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.

Sign up for Kiplinger’s Free E-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
Get Kiplinger Today newsletter — free
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.
-
Married? Five Ways to Ensure Your Estate Plans Work in Tandem
Getting on the same page now means fewer potential problems when it counts.
By Kiplinger Advisor Collective
-
12 Investments No Retiree Should Make
In retirement, when it's wise to take fewer risks with your nest egg, some investments are just nuts.
By David Rodeck
-
Before You Invest Like a Politician, Consider This Dilemma
As apps that track congressional stock trading become more popular, investors need to take into consideration some caveats.
By Ryan K. Snover, Investment Adviser Representative
-
How to Put Together Your Personal Net Worth Statement
Now that tax season is over for most of us, it's the perfect time to organize your assets and liabilities to assess your financial wellness.
By Denise McClain, JD, CPA
-
Stock Market Today: Trump Retreats, Markets Rejoice
Stocks rally, yields soften, the dollar rises, and even beaten-down names enjoy the wages of potential trade peace.
By David Dittman
-
Tesla Stock Pops as Elon Musk Promises DOGE Draw Back
Tesla reported a sharp drop in first-quarter earnings and sales, as the EV maker suffered a backlash to its CEO's political ambitions.
By Karee Venema
-
Bouncing Back: New Tunes for Millennials Trying to Make It
Adele's mournful melodies kick off this generation's financial playlist, but with the right plan, Millennials can finish strong.
By Alvina Lo
-
Early-Stage Startup Deals: How Do Convertible Notes Work?
Some angel investors support early startups by providing a loan in exchange for a convertible note, which includes annual interest and a maturity date.
By Murat Abdrakhmanov
-
Stock Market Today: Stocks Soar on China Trade Talk Hopes
Treasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
By Karee Venema
-
How Can Investors Profit From AI's Energy Use?
Global energy demand is expected to grow by leaps and bounds over the next several years as AI usage accelerates. Here's how to get a piece of the pie.
By Jacob Schroeder