Starbucks named Chipotle CEO Brian Niccol as its new chief executive, a move that comes as the coffee chain contends with activist investors, stagnant sales and a sinking stock price.
Starbucks said on Tuesday that Niccol will start 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, the board chair, will become Starbucks’ lead independent director.
The company said current CEO Laxman Narasimhan is stepping down immediately.
The appointment comes as Starbucks is losing ground with consumers around the globe, leading to its first drop in quarterly revenue since 2020 earlier this year. Store traffic was down 3% in the January through March period compared with a year earlier, while the company’s stock price has shed 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 jumped almost 800%, Starbucks said. Chipotle’s stock price has jumped 24% since January.