The coffee chain has tapped Chipotle CEO and corporate fix-it man Brian Niccol to be its new chairman and CEO, effective September 9.
Niccol, who will be Starbucks’ fourth CEO in just two years, has been leading the Mexican-inspired food chain since 2018. Starbucks said he has set “new standards in the industry and driven significant growth and value creation,” pointing to its revenue growing nearly 800% during his tenure.
“Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth,” said Mellody Hobson, Starbucks’ new lead independent director, in a release. “Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world.”
Starbucks’ (SBUX) stock soared nearly 19% at the open, while Chipotle’s (CMG) dipped 9%. Tuesday’s announcement wiped away Starbuck’s year-to-date losses and the stock is on track for the biggest one-day percentage gain on record since it went public in 1992.
Who is Niccol?
Niccol joined Chipotle in February 2018, helping turn around the chain from an E. coli nightmare that hospitalized 22 people. He’s expanded the menu, improved its digital ordering plus rewards program and its stock is up more than 800%.
Niccol said that “it’s hard to leave such a great company and all of the talented people I’ve had the pleasure to work with, but I depart knowing the business is in great shape and poised for growth with a strong, experienced leadership team.”
Niccol has a rich background in fast food, including a stint as CEO of Taco Bell from 2015 to 2018, prior to joining rival Chipotle. He’s also held various executive positions at Pizza Hut, another chain owned by Yum! Brands, before joining Taco Bell.
His “ability to drive visits was apparent during his time at both Taco Bell and Chipotle, spurred by new menu innovations, engaging marketing campaigns, and improved restaurant operations,” R.J. Hottovy, head of analytical research at Placer.ai, said in a note.
“Chipotle has outperformed the quick-service restaurant space the past several years, and we’d expect new products and advertising campaigns to be a focus early in his tenure at Starbucks,” Hottovy said.
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