Starbucks Stock Soars After Tapping Brian Niccol as Its New CEO
Starbucks stock is surging Tuesday after the coffee chain named current head of Chipotle, Brian Niccol, as its next CEO. Here's what you need to know.


Starbucks (SBUX) stock is surging in Tuesday's session after the coffee chain announced the immediate departure of Laxman Narasimhan as CEO. The company also said current Chipotle Mexican Grill (CMG) CEO Brian Niccol will take over the role on September 9. Rachel Ruggeri, chief financial officer at Starbucks, will serve as interim CEO until Niccol comes on board.
"We are thrilled to welcome Brian to Starbucks," said Mellody Hobson, current board chair at Starbucks, 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." Hobson will step down as board chair next month and become lead independent director.
Brian Niccol became CEO of Chipotle in March 2018 after serving as CEO of Taco Bell for several years. During his tenure as head of Chipotle, its stock returned roughly 700%. Today, though, Chipotle stock is sinking on the news of Niccol's departure.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"I am excited to join Starbucks and grateful for the opportunity to help steward this incredible company, alongside hundreds of thousands of devoted partners," said Niccol said in press release, adding that he has "long-admired Starbucks iconic brand, unique culture and commitment to enhancing human connections around the globe."
Niccol is replacing Narasimhan, who has had a tough time during his short tenure as Starbucks CEO. Indeed, through the August 12 close, the large-cap stock had declined more than 20% since Narasimhan was named CEO in March 2023.
Today's news comes just days after the The Wall Street Journal reported that Starboard Value had built a stake in Starbucks, joining fellow activist investor Elliott Management, which has a sizable position in SBUX, in a push for changes at the coffee chain.
Is Starbucks stock a buy, sell or hold?
Despite Starbucks' struggles on the price charts, Wall Street is bullish on the blue chip stock.
According to S&P Global Market Intelligence, the average analyst target price for SBUX stock is $89.66, representing implied upside 16% to last night's close –
but a 7% discount to current levels. Analysts could upwardly revise their price targets following today's pop. Meanwhile, the consensus recommendation is Buy.
"I cheered at the Starbucks news and on the Starbucks side, because the stock has been a colossal disappointment, as has Laxman. I'm sorry to say that," said Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments, in a statement. "It was great to see the board take action, though they had to be prodded by activist investors. But Brian Niccol just worked magic at Chipotle … Niccol will fix Starbucks."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Are COVID Shots Still Covered By Medicare?
Getting the new COVID-19 vaccine covered by Medicare isn't as easy this year as it was in the past. Here's what you need to know before you take a trip to your pharmacy.
-
How Digital Platforms Are Changing the Way You Invest in Gold
Investing in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
How Digital Platforms Are Changing the Way You Invest in Gold
Investing in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
Stocks Rise to Start Fed Week: Stock Market Today
The Nasdaq Composite and S&P 500 hit new record closing highs as Wall Street awaits the Fed's next rate cut.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams Now
Beyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on Retirement
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for Retirement
Saving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?
-
This Is What You Really Need to Know About Medicare, From a Financial Expert
Health care costs are a significant retirement expense, and Medicare offers essential but complex coverage that requires careful planning. Here's how to navigate Medicare's various parts, enrollment periods and income-based costs.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?
Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.