Starbucks has announced the immediate replacement of CEO Laxman Narasimhan with Brian Niccol, the current CEO of Chipotle, following a significant drop in sales. Niccol will officially take over on September 9. The change in leadership comes after Starbucks reported a decline in revenue for the second consecutive quarter, with a 2% decrease in sales in the U.S. and China, its two largest markets.
The company has been facing growing pressure from boycott campaigns, particularly due to its perceived support for Israel. The boycotts have had a noticeable impact on Starbucks’ financial performance, with global sales decreasing by 3% in the last quarter.
Also read: Starbucks Decline Hits $13B Loss Amid Boycott, CEO Warns
Starbucks shares saw a 21.4% increase on the Nasdaq following the announcement of the CEO replacement. Niccol, who has a strong background in the fast-food industry and previous roles at Chipotle, Taco Bell, and Pizza Hut, is expected to bring new strategies to revive the company’s sales. The market will be closely watching his approach as he steps into the role next month.
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