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Starbucks Appoints Chipotle's Brian Niccol as New CEO
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Starbucks replaced CEO Laxman Narasimhan with Chipotle's Brian Niccol. Starbucks stock jumped 24.5%, a record high. Chipotle's stock dropped 10% with Niccol's departure.
Narasimhan's exit was immediate. Starbucks CFO Rachel Ruggeri will lead temporarily until Niccol starts on Sept. 9. Narasimhan, previously at Reckitt, struggled with weak sales in the U.S. and China.
Niccol, known for his success at Chipotle and Taco Bell, boosted Chipotle's stock by 773%. He navigated Chipotle through a food scandal and the pandemic, maintaining sales growth.
Activist investors Elliott Management and Starboard Value supported Niccol. Elliott had discussed Starbucks' issues with the board, pushing for change.
Starbucks' board considered Narasimhan's lack of restaurant experience a drawback. They see Niccol as a quick fix, confident in his industry expertise.
Niccol's focus on Chipotle's app and digital ordering contrasts with Starbucks' mobile order issues. Chipotle's digital strategy includes dedicated lines and "Chipotlanes" for app orders.
Narasimhan's ouster suggests Starbucks' board is not keen on deals with activists. Elliott had proposed a settlement to protect Narasimhan's position, but the board moved forward with Niccol.
| Scores | Value | Explanation |
|---|---|---|
| Objectivity | 6 | Comprehensive reporting with in-depth analysis. |
| Social Impact | 4 | Influenced public opinion on corporate leadership. |
| Credibility | 5 | Solid evidence from authoritative sources. |
| Potential | 5 | Likely to trigger significant corporate changes. |
| Practicality | 4 | Directly applicable to corporate strategy. |
| Entertainment Value | 3 | Arouses interest in corporate dynamics. |