Chipotle Shares Tank After Starbucks Steals Their CEO Amid Activist Pressure

Amid increasing tales of a consumer who is quickly pulling back from spending on anything discretionary (like iced, non-fat, six-pump vanilla lattes, with soy milk, and honey), Starbucks has unceremoniously dumped its CEO this morning, and snagged a very prominent CEO from another chain.

Starbucks has named Chipotle Chief Executive Brian Niccol as the coffee chain’s new CEO and chairman, replacing Laxman Narasimhan after just over a year in the role.

“I am excited to join Starbucks and grateful for the opportunity to help steward this incredible company, alongside hundreds of thousands of devoted partners,” said Niccol.

“I have long-admired Starbucks iconic brand, unique culture and commitment to enhancing human connections around the globe. 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.”

Niccol will become the sixth person to serve as Starbucks’s CEO in the company’s history, and the second to come from outside the company. Narasimhan, who became CEO in March 2023, was the first.

Starbucks is thrilled…

“We are thrilled to welcome Brian to Starbucks. His phenomenal career speaks for itself. Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth. Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience,” said Mellody Hobson, Starbucks board chair.

“Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world.”

Chipotle shareholders not so much – SBUX is up 11% and CMG -10% on the news…

Most notably, this decision by Starbucks to oust their CEO comes after activist investor Elliott Investment Management pushed for transformation at the coffee giant to address slowing sales and operating problems. Additionally, last week The Wall Street Journal reported that another activist, Starboard Value, had taken a stake in Starbucks.