Starbucks CEO Laxman Narasimhan was replaced by Chipotle CEO Brian Niccol.
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Starbucks CEO Laxman Narasimhan to be replaced, announced on Tuesday Chipotle CEO Brian Nicol.
Affected by the news, Starbucks' stock price rose 10% in pre-market trading, while Chipotle's stock price fell 10%.
Narasimhan will take over as CEO in March 2023. Former CEO Howard Schultz, who handpicked Narasimhan as his successor, wrote an open letter in May weighing in on the company's problems and offering advice but never mentioned Narasimhan's name. Activist investor Elliott Management acquired a stake in the company in recent weeks.
Starbucks stock has fallen 21% during Narasimhan's tenure (excluding Tuesday's move).
Narasimhan's departure is effective immediately. Starbucks Chief Financial Officer Rachel Ruggeri will serve as interim CEO until September 9, when Niccol officially takes over as CEO.
Niccol has served as Chipotle CEO since 2018. Yum Brands Taco Bell. As CEO of Chipotle, he helped the chain recover from a foodborne illness scandal and led its restaurants through the pandemic. While other restaurants have reported sharp contractions in consumer spending in recent quarters, Chipotle has bucked the trend in traffic and sales.
Chipotle Chief Operating Officer Scott Boatwright will serve as the burrito chain's interim CEO. Chipotle Chief Financial Officer Jack Hartung had originally planned to retire next year, but will now continue as president of strategy, finance and supply chain.
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