CEO Starbucks, the world’s largest coffee chain headquartered in Seattle, announced on the 13th that it has appointed Brian Niccol, CEO of American fast-food chain Chipotle Mexican Grill, as its next CEO and executive chairman of the board. CEO Laxman Niccol, who had been
leading Starbucks since March of last year, stepped down from his position along with the announcement of the new CEO, taking responsibility for poor performance.
Starbucks has been struggling this year due to high prices and boycotts, with sales declining. Starbucks was hit hard by the boycott
movement when allegations spread that it supported Israel in the Gaza War that broke out in October of last year and provided funding to the Israeli government and military.
Since CEO Niccol took office in March of last year, Starbucks’ stock price has fallen by more than 20% as of the previous day. During this period, the U.S. stock market has been bullish.
New CEO Niccol is evaluated to have successfully led management innovation since leading Chipotle in 2018. During his tenure as CEO, Chipotle’s profits increased by about sevenfold and the stock price rose by about 800%, Starbucks said.
“Brian’s incredible track record speaks for itself,” said current Starbucks Chairwoman Mellody Hobson. “He is a culture communicator with a wealth of experience and a proven track record of driving innovation and growth.”
Former Starbucks CEO Howard Schultz also said, “I have long admired Brian’s leadership,” and “I believe he is the leader Starbucks needs at this turning point. I respect and fully support him.”
The Wall Street Journal (WSJ) previously reported that activist hedge funds Elliott Management (hereinafter Elliott) and Starboard Value recently acquired shares in Starbucks and demanded management innovation to support the stock price.
However, Chairwoman Hobson told the WSJ that the appointment of Nicole as CEO did not reflect discussions with activist investors.