Starbucks announced yesterday that CEO Laxman Narasimhan will leave his job after 17 months. This change comes as the company faces falling sales and unhappy investors. Brian Niccol, the CEO of Chipotle, will take over as the new chairman and CEO starting on September 9.
Starbucks is dealing with many problems. Sales in important markets like the US are down by 3% in the third quarter compared to last year. In China, sales dropped by 14% because of strong competition from cheaper options. The company is also under pressure from activist investors who want changes. This news follows an open letter from former CEO Howard Schultz, who criticized the current leadership.
Brian Niccol has led Chipotle to strong growth, with a 14.3% increase in revenue in 2023. After the announcement of the new CEO, Starbucks' stock price rose by 24%, which is its best day since going public in 1992. However, Chipotle's stock fell by 7%.
0 Comments