Starbucks announced a major shakeup to its top leadership team Tuesday, replacing its CEO with Chipotle’s top executive, as the coffee chain contends with multiple activist investor challenges during an extended stock market slump.
Brian Niccol, pictured in 2015, will be Starbucks' top executive starting next month.
Starbucks said current chief executive Laxman Narasimhan resigned effective immediately, ending a 17-month tenure as CEO.
Burrito hawker Chipotle’s CEO Brian Niccol will step into the coffee chain’s same role Sept. 9, with Starbucks’ chief financial officer Rachel Ruggeri serving in the interim.
Shares of Starbucks shot up more than 10% following the announcement, while shares of Chipotle fell almost 10%.
Chipotle announced its chief operating officer Scott Boatwright will replace Niccol as interim CEO.
This is a breaking news story and will be updated…