Starbucks has announced that it is replacing CEO Laxman Narasimhan with Chipotle CEO Brian Niccol. This decision comes as the coffee giant has been struggling with weak sales in the U.S. and China, leading to a 10% increase in the company’s shares following the news. Narasimhan took over as CEO in March 2023 but has faced challenges in improving the company’s performance. Activist investors Elliott Management and Starboard Value have acquired stakes in the company in recent weeks, leading to speculation about potential changes in leadership.
Starbucks CFO Rachel Ruggeri will serve as interim CEO until September 9, when Niccol will officially take over as the new CEO. This move is part of an effort to turnaround the company’s performance and address the issues that have been affecting its sales. This is a developing story, and updates are expected as the transition in leadership progresses.
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