Starbucks CEO swap: Niccol in, Narasimhan out amid stock surge
Laxman Narasimhan is no longer the CEO of Starbucks, reported by, among others, CNBC. He became particularly well-known after an interview with "Fortune" magazine, especially for his remarks on balancing professional and private life.
The former CEO of Starbucks made his stance clear in the notable interview – he does not work past 6:00 p.m., and if someone from the company occupies his time after that, it better be something "very important", as he said.
The coffeehouse chain announced that Brian Niccol, the CEO of the Mexican restaurant chain Chipotle, will replace Laxman Narasimhan. "Brian Niccol will join Starbucks on September 9, 2024," Until then, the company's CFO, Rachel Ruggeri, will manage it.
CNBC reports that the change in the CEO position caused Starbucks' stock to soar by 24.5 percent. Meanwhile, the burrito chain's stocks fell by over 10 percent.
Starbucks' stocks reacted
After Narasimhan's dismissal, the notable interview was brought up again, but what likely sealed the former CEO's fate were the company's financial results. Starbucks' stocks fell by 21 percent during his tenure (since March 2023), not counting the rise following the announcement of changes in the top management.
Additionally, CNBC reports that Starbucks saw a 3 percent drop in sales last quarter, primarily in its largest markets, the U.S. and China.
