By Arlenys Tabare
Aug 14, 2024, 4:49 PM EDT
The largest coffee chain in the United States Starbucks recently announced that it will replace Laxman Narasimhan, its former CEO.by the CEO of the Tex-Mex fast food chain Chipotle, Brian Niccol.
Through a statement published this Tuesday, Laxman will step down after just one year in charge amid a struggle to maintain sales at Starbucksa factor that perhaps influenced this new change since Niccol will be the company’s fourth CEO in just two years.
According to Starbucks, new standards are being set in the industry “driving significant growth and value creation,” and Niccol, who has led Chipotle since 2018, generating revenue growth of nearly 800% During his tenure, he is ideal for managing the coffee shop chain.
For Mellody Hobson, Starbucks’ new lead independent director, “Brian is a culture bearer who brings a wealth of experience and a proven track record of driving innovation and growth. Our board believes he will be a transformational leader for our company, our people and all those we serve around the world,” he said.
Hobson also said that “despite the obstacles that arose, Laxman has focused on improving the business to meet the needs of our customers and partners.. We all wish him the best and we know that he will do great things in the future,” he said.
In recent years, Starbucks sales fell 3% globally and 2% in the United StatesThe latter is due to the pressure that consumers maintain due to high inflation that has undermined their budgets, generating changes in their consumption levels.
Finally, despite falling revenue, Starbucks (SBUX) shares rose 19% and Chipotle (CMG) fell 9%.
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