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Starbucks Corporation (NASDAQ:SBUX) shares are trading higher after the company announced that Brian Niccol, CEO and Chairman of Chipotle Mexican Grill, Inc. (NYSE:CMG), has been hired as Starbucks’ new Chairman and Chief Executive Officer, effective September 9.
Current CEO Laxman Narasimhan is stepping down from his role as CEO and as a director effective immediately, the company said.
Starbucks Chief Financial Officer Rachel Ruggeri will serve as interim CEO until that time.
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Under Niccol’s leadership, Chipotle’s revenue has nearly doubled, profits have increased nearly sevenfold, and the stock price has increased by nearly 800%. This happened while increasing wages for retail team members, expanding benefits, and strengthening the culture.
Meanwhile, Mellody Hobson will lead Starbucks as an independent director.
Niccol joined Chipotle as Chief Executive Officer and a director in March 2018, and became Chairman of the Board in March 2020. Before joining Chipotle, he served as Chief Executive of Taco Bell.
“Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience,” said Hobson. “Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world.”
According to Benzinga Pro, SBUX stock has lost over 23% in the past year.
Investors can gain exposure to the stock via SPDR Select Sector Fund – Consumer Discretionary (NYSE:XLY) and Fidelity MSCI Consumer Discretionary Index ETF(NYSE:FDIS).
Price Action: At last check on Tuesday, SBUX shares were trading higher by 14.80% to $88.40 premarket.
Photo by Manu Padilla on Shutterstock
