Unlock the Editor’s Digest at no cost
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.
Starbucks has named Chipotle head Brian Niccol as its chief government, in a significant shake-up because the world’s largest espresso chain contends with falling gross sales and stress from activist investor Elliott.
The corporate mentioned on Tuesday that its present chief government, Laxman Narasimhan, would step down instantly.
Niccol will be part of as CEO on September 9, with the corporate’s chief monetary officer Rachel Ruggeri serving as interim CEO till then.
The appointment of Niccol comes after Starbucks founder Howard Schultz criticised Narasimhan’s management at a time when the corporate is grappling with sluggish demand and a push for modifications from Elliott.
Starbucks on Tuesday additionally made Mellody Hobson, presently chair of the board and an in depth ally of Schultz, its lead unbiased director.
“[Niccol] has my respect and full assist,” mentioned Schultz. “I thank Mellody and the Starbucks board for his or her deep dedication to shaping the way forward for this outstanding world phenomenon that’s Starbucks.”
“We’re thrilled to welcome Brian to Starbucks. His phenomenal profession speaks for itself,” added Hobson, citing his “confirmed observe document of driving innovation and progress”.
Shares in Starbucks rose 11 per cent in pre-market buying and selling. Chipotle shares fell 10 per cent.
