Hires Brian Niccol, former CEO of Chipotle
Under Niccol’s leadership, Chipotle’s profits grew 7 times
Howard Schultz steps down after 17 months
Chipotle stock price drops by 7.5%
Starbucks. Yonhap News
‘Savior’ emerges as Starbucks stock price surges by over 20%.
On the 13th local time, according to the US stock market, Starbucks stock price surged by 24.5%. The trading volume also increased by 1000% compared to the previous trading day, attracting buying interest.
The reason for Starbucks’ stock price surge on that day was the appointment of Brian Niccol, CEO of the US fast-food chain Chipotle Mexican Grill, as the next CEO and executive chairman of Starbucks.
Incoming CEO Niccol will take office on September 9. Until then, Rachel Lugner, Chief Financial Officer (CFO), will serve as interim CEO.
Melody Hobson, Starbucks’ board chairman, stated, “Brian’s remarkable career speaks for itself,” and “He is a proven culture carrier with rich experience and a track record of leading innovation and growth.”
Following the leadership change, Kevin Johnson, who has been leading Starbucks since March last year, stepped down as CEO after 17 months, citing poor performance as the reason.
Starbucks has faced difficulties this year due to high commodity prices and boycotts. With decreasing sales in its largest markets, the US and China, same-store sales in the second quarter decreased by 3% compared to the same period last year.
Chipotle. Yonhap News
Since the appointment of Niccol as CEO in March last year, Starbucks’ stock price had dropped by over 20% before the previous day.
In contrast, incoming CEO Niccol receives praise for successfully leading operational innovation at Chipotle since 2018. During his tenure as CEO, Chipotle’s profits increased approximately sevenfold, and its stock price rose by around 800%, as reported by Starbucks.
In a contrasting move, while Starbucks’ stock price surged, Chipotle’s stock price dropped by 7.5%.
Activist hedge fund Elliott Management, which holds a stake in Starbucks, expressed optimism, stating, “Today’s announcement is seen as a transformative step for Starbucks,” and “We welcome Niccol’s appointment and look forward to collaborating with the board moving forward.”