Starbucks names new CEO

Brian Niccol will take over as the chief executive officer of Starbucks Corp. on Sept. 9. He will replace Laxman Narasimhan, who is stepping down as CEO “effective immediately,” according to the company.

Rachel Ruggeri, chief financial officer, will serve as interim CEO until Niccol starts.

Niccol is currently the chairman and CEO of Chipotle.

“We are thrilled to welcome Brian to Starbucks,” said Mellody Hobson, Starbucks board chair. “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.”

Starbucks has been challenged as same-store sales have declined. During the third quarter of fiscal 2024, Starbucks’ global comparable same-store sales fell 3%, driven by a 5% decline in comparable transactions that partially was offset by a 2% increase in average ticket. In addition to the 2% same-store sales decline in the United States, the company experienced a 14% decline in China.

For the quarter ended June 30, Starbucks earned $1.05 billion, equal to 93¢ per share on the common stock, and down from the same period of the year before when the company earned $1.14 billion, or 99¢ per share.

Quarterly sales ticked down to $7.52 billion from $7.56 billion the year before.