Starbucks named Chipotle CEO Brian Niccol as its new CEO, a move that comes as the coffee chain grapples with activist investors, stagnant sales and a sinking stock price.
Starbucks said on Tuesday that Niccol will begin in his new role on September 9. The company’s chief financial officer, Rachel Ruggeri, will serve as interim CEO until that date, while Mellody Hobson, chairman of the board, will become Starbucks’ lead independent director.
The company said current CEO Laxman Narasimhan is stepping down with immediate effect.
The appointment comes as Starbucks is losing ground with consumers around the world, leading to its first decline in quarterly revenue since 2020 earlier this year. Store traffic was down 3% in the January to March period compared to a year earlier, while the company’s share price has lost 18% of its value so far this year.
Since Niccol became Chipotle’s CEO in 2018, the burrito chain’s revenue has doubled while profits have increased nearly 800%, Starbucks said. Chipotle’s stock price has jumped 24% since January.