Starbucks replaces its CEO, names Chipotle chief to head the company

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Starbucks, struggling with weak demand and disgruntled investors, said Tuesday it's replacing CEO Laxman Narasimhan with Brian Niccol, the chairman and CEO of Chipotle.

FILE - A Starbucks mermaid logo sign is displayed on a store, May 29, 2024, in Salem, N.H. Starbucks, struggling with weak demand and disgruntled investors, said Tuesday it's replacing CEO Laxman Narasimhan with Brian Niccol, the chairman and CEO of Chipotle.

Revenue fell again in the April-June period. A new summer drink with boba-like raspberry "pearls" drove strong U.S. sales, but the company had to pull back on marketing after it ran out of ingredients, Narasimhan said during a recent conference call with investors. Meanwhile, Starbucks's share price has fallen 18 per cent so far this year.

Chipotle has continued to see growth despite a larger slowdown in U.S. fast food sales as lower-income customers, in particular, eat more meals at home or look for better value. In the April-June period, Chipotle's revenue increased 18 per cent while its same-store sales -- or sales at stores open at least a year -- rose 11 per cent.

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