Starbucks announced a new CEO seeking to caffeinate the coffee chain’s sales, which fell slightly in the previous quarter due to lighter customer traffic.
New CEO Brian Niccol, the current CEO of Chipotle, will replace outgoing CEO Laxman Narasimhan. The announcement from Starbucks comes shortly after the chain revealed the results for its third financial quarter of 2024, during which the chain saw its consolidated net revenues go down slightly by 1%. The chain has also seen its global store sales decrease by 3%, along with its shares shedding value since the beginning of the year.
“I have long-admired Starbucks iconic brand, unique culture and commitment to enhancing human connections around the globe,” Niccol said. “As I embark upon this journey, I am energized by the tremendous potential to drive growth and further enhance the Starbucks experience for our customers and partners, while staying true to our mission and values.”
The coffee chain’s shares saw a jump in value on Tuesday, the same day Niccol’s hiring was announced, increasing by over 20% to almost $93. Starbucks’s shares had been diminishing in value by about 18% since January.
Starbucks’s decrease in its quarterly report could be due in part to calls online to boycott the coffee chain in the wake of the conflict in Gaza, with some on social media claiming the chain is connected to Israel. The coffee chain has denied having any connection to the country, stating last year that it has “never contributed to any government or military operation.”
Earlier this year, Starbucks’s Middle East franchisee announced it would be firing 2,000 of its employees as a result of dropping sales caused by boycotts connected with the war in Gaza.
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Starbucks praised Niccol, who also previously worked as chief executive at Taco Bell, for his work at Chipotle, which has included raising the burrito chain’s stock price by almost 800%.
Niccol will assume his new position on Sept. 9, with the chain having Chief Financial Officer Rachel Ruggeri serve as interim CEO.