Brian Niccol, CEO of burrito chain Chipotle CEO has been named as his replacement.
Narasimhan was hand-picked by former Starbucks CEO Howard Schultz in March 2023 but the coffee chain’s performance has struggled under his watch, with the company reporting weak sales in the US and China, its two largest markets.
The change in personnel follows pressure from activist investor Elliott Investment Management, which recently acquired a stake in the company and which has called for change at Starbucks following the sales slump.
In a business update in May, Starbucks reported a 4% decline in global sales, with Narasimhan saying the performance did not meet the company’s expectations.
Narasimhan’s replacement Niccol has been CEO of Chipotle since 2018, during which time the brand has performed strongly and its stock price has risen by nearly 800%.
