CNBC's Jim Cramer on discussed Starbucks' management shakeup, saying the new leadership will be crucial to turn the business around.
The coffee chain announced it would replace current CEO Laxman Narasimhan with Brian Niccol, who is currently the CEO of Chipotle.' management shakeup, saying the new leadership will be crucial to turn the business around. The ubiquitous coffee chain on Tuesday"Brian Niccol is the key to a new Starbucks, one that can reclaim its old mantle as the 'third place' — you just need to know that this turnaround can't happen overnight, he said.
According to Cramer, Narasimhan wasn't the right person for the role, saying Starbucks needed an executive familiar with the fast food industry to effectively solve its issues. Narasimhan formerly worked at McKinsey, was an executive atNiccol's record at Chipotle makes him a great fit for the role, Cramer said. He explained that Niccol successfully improved Chipotle's food, store efficiency and customer throughput.
"Today we got something very rare: A CEO was straight up fired, and in his place, we didn't just get some stuffed shirt we didn't care about," he said."No, Starbucks brought in Brian Niccol, the man who almost singlehandedly turned around Chipotle, to run the business. They could not have picked a better guy."at no cost to help you build long-term wealth and invest smarter.
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