By Max Zimmerman | Bloomberg
Starbucks has named Chipotle Mexican Grill Chief Executive Officer Brian Niccol as the coffee chain’s new CEO and chairman, replacing Laxman Narasimhan after just over a year in the role.
Chief Financial Officer Rachel Ruggeri will serve as interim CEO until Niccol starts his new role on Sept. 9, the company said in a statement. Mellody Hobson, Starbucks board chair, will become lead independent director. Narasimhan will also step down from his seat on the board.
Starbucks shares jumped more than 13% before the market opened.
Niccol, previously with Taco Bell in Irvine, brought Chipotle’s headquarters to Newport Beach from Denver just months after he was tapped to lead the fast food chain.
Narasimhan, a longtime PepsiCo executive who has also served as the CEO of Reckitt, a U.K.-based consumer health company, became Starbucks’ CEO in March 2023. He succeeded Howard Schultz, the longtime Starbucks leader and chairman emeritus who came out of retirement in 2022 to serve as the company’s interim CEO.
But investors quickly soured on Narasimhan as the company’s sales weakened and it dealt with multiple issues, including competition from lower-cost competitors in China and boycotts in the Middle East and elsewhere due to its perceived support for Israel.
Mellody Hobson, the chair of Starbucks’ board of directors, said Niccol has transformed Chipotle since becoming its CEO in 2018 by focusing on menu innovation, operational excellence and digital transformation.
“Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth,” Hobson said in a statement. “Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience.”
Schultz said he has long admired Niccol.
“I believe he is the leader Starbucks needs at a pivotal moment in its history. He has my respect and full support,” Schultz said in a statement.
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