The $20 billion boss
After its best ever day as a public company, Starbucks added the equivalent value of one of America's most read newspapers (NYT $9B), the biggest name in jeans (Levi's $7B), the nation's largest cinema chain (AMC $2B), with about $3B left in change... all because it announced a burrito chain expert as its new CEO.
Investors seem delighted with the news that Brian Niccol, current CEO at Chipotle and a former exec at Taco Bell and Pizza Hut, will take the reins in September, replacing Laxman Narasimhan who served as CEO for ~16 months.
The 24.5% rise in SBUX's share price equated to the coffee chain’s market cap. soaring to just shy of $109 billion at the end of yesterday, as people wait to see if "Chipotle's redeemer" has the Schultzian credentials. But, after such a positive coronation, the new SBUX boss has their work cut out, with the company facing pressure from activist investors, a consumer base that’s getting fed up with price hikes, and a China business that has to run just to stay still.
Investors seem delighted with the news that Brian Niccol, current CEO at Chipotle and a former exec at Taco Bell and Pizza Hut, will take the reins in September, replacing Laxman Narasimhan who served as CEO for ~16 months.
The 24.5% rise in SBUX's share price equated to the coffee chain’s market cap. soaring to just shy of $109 billion at the end of yesterday, as people wait to see if "Chipotle's redeemer" has the Schultzian credentials. But, after such a positive coronation, the new SBUX boss has their work cut out, with the company facing pressure from activist investors, a consumer base that’s getting fed up with price hikes, and a China business that has to run just to stay still.
