- Starbucks (NDAQ:SBUX) is announcing Brian Niccol as its new chairman and chief executive officer effective Sept. 9
- Niccol has served as CEO of Chipotle (NYSE:CMG) since 2018 and as chairman since 2020, and will leave behind a track record of significant value creation
- Starbucks is a coffee roaster and retailer that operates more than 39,000 stores worldwide
- Starbucks stock has given back 7.13 per cent year-over-year and 2.81 per cent since 2019
Starbucks (NDAQ:SBUX) announced Tuesday that Brian Niccol will become its new chairman and chief executive officer effective Sept. 9, 2024.
Niccol has served as CEO of Chipotle (NYSE:CMG) since 2018 and as chairman since 2020. He has presided over a period of significant growth marked by:
- A nearly 100 per cent increase in revenue, including more than 78 per cent from US$5.5 billion in 2019 to US$9.8 billion in 2023.
- A nearly sevenfold increase in profits, including a 242 per cent increase in net income from US$350 million in 2019 to US$1.2 billion in 2023.
- Wage increases and expanded benefits for retail team members.
- An unwavering focus on “people and culture, menu innovation, operational excellence and digital transformation,” according to Tuesday’s news release.
- An almost 800 per cent shareholder return.
- Starbucks’ performance has been comparatively less than stellar over the past five years, posting 35 per cent revenue growth to US$35.9 billion in fiscal 2023 and only 13.8 per cent net income growth over the period to US$4.1 billion.
Before joining Chipotle, Niccol worked as CEO of Taco Bell after rising up the ranks as president and chief marketing and innovation officer. Before that, he held leadership roles at Pizza Hut and Procter and Gamble (NYSE:PG).
In terms of board advisory, he is currently a director at Walmart (NYSE:WMT) and previously served on the boards of KB Home and Harley-Davidson.
“I am excited to join Starbucks and grateful for the opportunity to help steward this incredible company alongside hundreds of thousands of devoted partners,” Niccol said in a statement. “I have long admired Starbucks’ iconic brand, unique culture and commitment to enhancing human connections around the globe. As I embark upon this journey, I am energized by the tremendous potential to drive growth and further enhance the Starbucks experience for our customers and partners, while staying true to our mission and values.”
Incoming Starbucks chairman and CEO Brian Niccol. (Source: Chipotle Mexican Grill)
Niccol replaces outgoing CEO and director Laxman Narasimhan, who is credited with improving the Starbucks partner experience, driving supply chain innovation and enhancing store operations.
Chief financial officer Rachel Ruggeri will serve as interim CEO until Niccol takes over, while Mellody Hobson, Starbucks chair, will become lead independent director.
Leadership insights
“We are thrilled to welcome Brian to Starbucks,” Hobson said in a statement. “His phenomenal career speaks for itself. Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth. Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience. Our board believes he will be a transformative leader for our company, our people and everyone we serve around the world.”
“On behalf of the board, I want to sincerely thank Laxman for his contributions to Starbucks and his dedication to our people and brand,” Hobson continued. “In the face of some challenging headwinds, Laxman has been laser focused on improving the business to meet the needs of our customers and partners. We all wish him the very best and know he will do great things in the future.”
“Having followed Brian’s leadership and transformation journey at Chipotle, I’ve long admired his leadership impact,” said Howard Schultz, Starbucks founder and chairman emeritus. “His retail excellence and track record in delivering extraordinary shareholder value recognizes the critical human element it takes to lead a culture and values-driven enterprise. I believe he is the leader Starbucks needs at a pivotal moment in its history. He has my respect and full support. I thank Mellody and the Starbucks board for their deep commitment to shaping the future of this remarkable global phenomenon that is Starbucks.”
About Starbucks
Starbucks, established in 1971, is a coffee roaster and retailer that operates more than 39,000 stores worldwide.
Starbucks stock (NDAQ:SBUX) is up by 21.78 per cent on the news, trading at US$93.81 per share as of 10:27 am ET. The stock has given back 7.13 per cent year-over-year and 2.81 per cent since 2019.
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(Top photo of a Starbucks coffee shop in Bangkok, Thailand: Adobe Stock)