Starbucks (NASDAQ:) shares surged more than 10% in premarket trading Tuesday after the company announced that Brian Niccol, the current Chairman and CEO of Chipotle Mexican Grill (NYSE:), will take over as its new Chief Executive Officer.
The news, however, sent Chipotle’s stock down by 9.6% in premarket trading.
Niccol, who has led Chipotle since 2018, will officially assume his new role at Starbucks on September 9, 2024, leaving Starbucks, effective August 31. During his tenure at Chipotle, Niccol transformed the company by focusing on people, culture, and digital innovation, leading to a near doubling of revenue and an 800% increase in the stock price.
Starbucks praised Niccol’s ability to drive innovation and growth, with Mellody Hobson, Starbucks Board Chair, stating, “His phenomenal career speaks for itself.”
“Our board believes he will be a transformative leader for our company.”
Laxman Narasimhan, the current Starbucks CEO, is stepping down effective immediately, with CFO Rachel Ruggeri serving as interim CEO until Niccol’s arrival.
Starbucks founder Howard Schultz also voiced his support for Niccol, noting his “leadership impact” and calling him “the leader Starbucks needs at a pivotal moment in its history.”
At Chipotle, Scott Boatwright, the current Chief Operating Officer, has been appointed interim CEO following Niccol’s departure. Boatwright, a seven-year Chipotle veteran, was instrumental in the company’s turnaround strategy and will continue to execute its strategic plan without interruption.
Chipotle’s Board of Directors expressed confidence in their deep bench of leadership talent, ensuring a smooth transition and continued growth under Boatwright’s leadership.