Starbucks has named Chipotle head Brian Niccol as its chief executive, in a major shake-up as the world’s largest coffee chain contends with falling sales and pressure from activist investor Elliott.
The company said on Tuesday that its current chief executive, Laxman Narasimhan, would step down immediately.
Niccol will join as CEO on September 9, with the company’s chief financial officer Rachel Ruggeri serving as interim CEO until then.
The appointment of Niccol comes after Starbucks founder Howard Schultz criticised Narasimhan’s leadership at a time when the company is grappling with sluggish demand and a push for changes from Elliott.
Starbucks on Tuesday also made Mellody Hobson, currently chair of the board and a close ally of Schultz, its lead independent director.
“[Niccol] has my respect and full support,” said Schultz. “I thank Mellody and the Starbucks board for their deep commitment to shaping the future of this remarkable global phenomenon that is Starbucks.”
“We are thrilled to welcome Brian to Starbucks. His phenomenal career speaks for itself,” added Hobson, citing his “proven track record of driving innovation and growth”.
Shares in Starbucks rose 11 per cent in pre-market trading. Chipotle shares fell 10 per cent.