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 that CEO Laxman Narasimhan is stepping down after a little more than a year in the job

. The Seattle coffee giant said Brian Niccol, the chairman and CEO of Chipotle, will become Starbucks' chairman and CEO on Sept. 9. Starbucks shares jumped more than 13% before the market opened. Narasimhan, a longtime PepsiCo executive who has also served as the CEO of Reckitt, a U.K.-based consumer health company, became Starbucks' CEO in March 2023.

But investors quickly soured on Narasimhan as the company's sales weakened and it dealt with multiple issues, including competition from lower-cost competitors in China and boycotts in the Middle East and elsewhere due to its perceived support for Israel. Mellody Hobson, the chair of Starbucks' board of directors, said Niccol has transformed Chipotle since becoming its CEO in 2018 by focusing on menu innovation, operational excellence and digital transformation.

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Starbucks replaces its CEO, names Chipotle chief to head the companyStarbucks, struggling with weak demand and disgruntled investors, said Tuesday that CEO Laxman Narasimhan is stepping down after a little more than a year in the job.
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