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Starbucks replaces CEO Laxman Narasimhan with Brian Niccol
(MENAFN) On Tuesday, Starbucks announced a significant leadership change, replacing CEO Laxman Narasimhan with Brian Niccol, the current chairman and CEO of Chipotle. Niccol will assume the role on September 9, while Narasimhan will step down immediately. This shift in leadership comes in response to a slump in sales for Starbucks, which has faced declining demand in its key markets, the US and China.
Starbucks reported a decrease in sales for the second consecutive quarter. For the April-June 2024 period, North American store sales fell by 2 percent, with US store sales also down by 2 percent. At the end of this period, stores in the US and China made up 61 percent of Starbucks' global portfolio. The company's financial results showed a modest 1 percent revenue increase in North America but a nearly 7 percent decline in international revenues, dropping from USD1.97 billion to USD1.84 billion year-over-year.
Starbucks' stock reacted positively to the news of Niccol's appointment, rising approximately 21.4 percent on the Nasdaq at 10:53 a.m. EDT (1453 GMT). The company has been dealing with negative impacts from a boycott against international firms perceived as supporting Israel, which has affected its financial performance in recent quarters.
Before leading Chipotle, Niccol was the CEO of Taco Bell and held various leadership positions at Pizza Hut, both part of Yum! Brands. He also serves on Walmart's board of directors. His appointment at Starbucks marks a significant change as the company seeks to address its recent challenges and rejuvenate its performance.
Starbucks reported a decrease in sales for the second consecutive quarter. For the April-June 2024 period, North American store sales fell by 2 percent, with US store sales also down by 2 percent. At the end of this period, stores in the US and China made up 61 percent of Starbucks' global portfolio. The company's financial results showed a modest 1 percent revenue increase in North America but a nearly 7 percent decline in international revenues, dropping from USD1.97 billion to USD1.84 billion year-over-year.
Starbucks' stock reacted positively to the news of Niccol's appointment, rising approximately 21.4 percent on the Nasdaq at 10:53 a.m. EDT (1453 GMT). The company has been dealing with negative impacts from a boycott against international firms perceived as supporting Israel, which has affected its financial performance in recent quarters.
Before leading Chipotle, Niccol was the CEO of Taco Bell and held various leadership positions at Pizza Hut, both part of Yum! Brands. He also serves on Walmart's board of directors. His appointment at Starbucks marks a significant change as the company seeks to address its recent challenges and rejuvenate its performance.
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