New York, United States: Starbucks announced on Tuesday that Brian Niccol, the current chief executive at Chipotle, will be taking over as the new CEO of the coffee chain. This change comes just a year after Laxman Narasimhan became CEO.
Narasimhan resigned as CEO and from the Starbucks board immediately. This news caused Starbucks shares to rise by 21 percent, while Chipotle’s shares dropped by eight percent.
The move comes as Starbucks faces challenges in its business, including declining sales and tough market conditions in China. The company is also dealing with pressure from activist investors seeking to increase the share price.
The new CEO, Brian Niccol, is known for driving growth and innovation at Chipotle. He will take over the role on September 9, with Starbucks’ CFO, Rachel Ruggeri, serving as interim CEO until then.
This leadership change follows a period of innovation under Narasimhan’s leadership, but investors are hopeful that Niccol will bring further improvements to Starbucks’ operations.
Vocabulary List:
- Resigned /rɪˈzaɪnd/ (verb): To voluntarily leave a job or position.
- Challenges /ˈtʃælɪndʒɪz/ (noun): Difficulties or obstacles that need to be overcome.
- Innovation /ˌɪnəˈveɪʃən/ (noun): The act of introducing new ideas methods or products.
- Pressure /ˈprɛʃər/ (noun): The influence exerted to make someone act in a certain way.
- Operations /ˌɒpəˈreɪʃənz/ (noun): The activities involved in the functioning of a business.
- Investor /ɪnˈvɛstər/ (noun): An individual or entity that allocates capital with the expectation of a financial return.