Changes in SBUX

On Tuesday, the large restaurant chain Starbucks announced a massive change in leadership, replacing its former chief executive offer with Chipotle CEO Brian Niccol. He is replacing Laxman Narasimhan, who served just one year in the company.

Niccol oversaw Chipotle's dramatic rise in popularity and success in recent years. Having served since 2018, Niccol managed the company's prospering times during the COVID-19 pandemic, when food deliveries made Chipotle a hotspot for many to eat during lockdowns. Chipotle made many new openings, and exponential grew its market share and share price during his reign.

Niccol also served as a chief executive of Taco Bell, another large restaurant chain.

Niccol stated in a public press release that, "I am energized by the tremendous potential to drive growth and further enhance the Starbucks experience for our customers and partners." Many have praised him for his strong reputation in other companies, as well as his years of experience in the restaurant industry.

As a result, many investors in the market have had a wave of enthusiasm for Starbucks and, thus, bought en masse in the stock market. Starbucks stands at a whopping 20% increase in share price as of Tuesday noon, showing confidence in the new chief executive officer.

This new change came after a poor earnings report showing Starbucks to be below monetary projections.