Starbucks has appointed former Chipotle Mexican Grill boss Brian Niccol as CEO.
Niccol will replace Laxman Narasimhan, who took over the leadership role in March 2024 and has now left the company.
The shake-up was brought about after activist investor Elliott Management pressured the chain to improve its stock price and overall performance.
Starbucks’ performance had been in decline over the past five years, with shares losing 18% value over that period. The chain reported poor sales in the US and China recently, which contributed to the decline.
Two hours after the news of Niccol joining the group broke, Starbucks shares has risen 20%.
Earlier this week, Reuters reported Elliott’s plan to add Jesse Cohn, an equity and managing partner in the firm, to the board of directors.
Subsequently, Starbucks board chair Mellody Hobson said Elliott had not been consulted when making the decision to appoint Niccol.
“Having followed Brian’s leadership and transformation journey at Chipotle, I’ve long admired his leadership impact,” said former Starbucks chief executive Howard Schultz.
“His retail excellence and track record in delivering extraordinary shareholder value recognises the critical human element it takes to lead a culture and values-driven enterprise.
“I believe he is the leader Starbucks needs at a pivotal moment in its history. He has my respect and full support.”
Niccol became Chipotle chief executive in 2018, having formerly occupied the same position at Taco Bell since 2015.
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