Starbucks appoints new CEO as stocks soar, chipotle tumbles
As reported by CNBC, among others, Laxman Narasimhan is no longer the CEO of Starbucks. He became particularly well-known after an interview with Fortune magazine, in which he discussed balancing professional and private life.
8:52 AM EDT, August 14, 2024
In the interview, Narasimhan made his stance clear – he does not work past 6:00 PM, and if someone from the company occupies his time after that, it "better be sure that it's important".
The coffeehouse chain announced that Brian Niccol, the CEO of the Mexican restaurant chain Chipotle, will replace Narasimhan. He will take over the company on September 9. Until then, the company's CFO, Rachel Ruggeri, will manage it.
CNBC reports that the change in the CEO position caused Starbucks' stock to soar by 24.5 percent. Meanwhile, Chipotle’s stocks fell by over 10 percent.
Starbucks' stocks reacted
After Narasimhan's dismissal, the notable interview was brought up again, but what likely sealed the former CEO's fate were the company's financial results. Starbucks' stocks fell by 21 percent during his tenure (since March 2023), not counting the rise following the announcement of changes in top management.
Additionally, CNBC reports that Starbucks saw a 3-percent drop in sales last quarter, primarily in its largest markets, the US and China.
