Starbucks, the world’s largest coffee chain, which has been suffering from poor performance due to recent high prices, boycotts due to support for Israel, etc., has appointed Brian Niccol, CEO of fast food chain Chipotle (pictured), as its new CEO.
According to Reuters and other news agencies, Starbucks announced on the 13th (local time) that it would appoint Nicole as CEO and chairman of the board. In particular, it said that it highly regarded the fact that since she took office as CEO of Chipotle in 2018, Chipotle’s profits have increased by about seven times and its stock price has also risen by about 800%. Founder Howard Schultz, who also served as CEO for 23 years, also praised Nicole as “the leader that Starbucks needs at a turning point.”
As a result, CEO Laxman Nareshman, who had led Starbucks since March of last year, stepped down after 1 year and 5 months, taking responsibility for poor performance.
Starbucks has been struggling recently due to rising prices worldwide and sluggish performance in markets such as China. In addition, after the war between Israel and the Palestinian militant group Hamas broke out in October last year, the Jewish bloodline of founder Schultz became an issue. Some consumers claimed that “Starbucks provides financial support to the Israeli military” and boycotted the company. Starbucks’s explanation that “neither the company nor founder Schultz has ever provided financial support to the Israeli government or military” had little effect.
As a result, Starbucks’ sales for the second quarter of this year (April to June) decreased by 3% compared to the same period last year. The stock price also plummeted by more than 20% since CEO Nareshman took office.
However, when the news of the appointment of CEO Nicole was reported, Starbucks’ stock price on the New York Stock Exchange rose by about 20% compared to the previous day. On the other hand, Chipotle’s stock price fell by about 7.5%.
Reporter Lee Cheong-ah [email protected]
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2024-08-15 21:03:45