Brian Niccol will take over as Starbucks’ new CEO on September 9. The successful entrepreneur is coming from leading another company that made a splash on the stock market.
Niccol is a veteran in the retail food industry.
Starbucks shares (SBUX) jumped more than 20% on Tuesday after announcing that it would replace its chief executive, Laxman Narasimhan, with a food industry veteran. This will be reflected in the Cedear SBUXwhich is listed on the local market.
The coffee giant chose the current CEO of Chipotle (CMG), Brian Niccolwho has led the fast-food chain since 2018, as its new chief executive effective Sept. 9. During his tenure at Chipotle, “Revenue has nearly doubled, profits have increased nearly sevenfold, and the stock price has risen nearly 800%“Starbucks said.
“We are thrilled to welcome Brian to Starbucks. His phenomenal career speaks for itself,” said Mellody Hobson, Starbucks board chair. “Brian is a culture-changer who brings a wealth of experience and a proven track record of driving innovation and growth.”
Starbucks shares are trading at $93.38 on Tuesday, their highest level in nearly five months. The surge in share prices helped erase most of the Seattle-based company’s stock losses this year, and boosted its market capitalization to $104 billion.
Starbucks: shares on the rise
While Starbucks shares get a welcome boost from the news, Chipotle shares fall 11 percent following the announcement. Chipotle shares are up nearly 11 percent so far this year, trading at $50.18 at the opening bell. The stock moves reduced Chipotle’s market cap to $68.39 billion.
The company conducted a 50-to-1 stock split in late June to help make shares, which were valued at more than $3,000 each, more accessible to investors. Niccol will step down as Chipotle CEO on Aug. 31, and Chief Operating Officer Scott Boatwright will take over as interim CEO while the company conducts its search for a successor, the company said in a separate statement.
wall street usa stock markets
NYSE
“Thanks to our robust talent planning process, we are well prepared for events like this due to the deep pipeline within the organization,” said Scott Maw, Chipotle’s board chairman. “The board is excited to see other strong leaders expand their roles and provide growth and development for more people in the organization.”
Niccol is a veteran of the food retail industry. Prior to his time at Chipotle, Niccol was CEO of Taco Bell and held other executive positions at the brand, and previously held leadership roles at Pizza Hut. He began his career at consumer goods giant Procter & Gamble (PG).
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
