Starbucks has replaced CEO Laxman Narasimhan after just 18 months, citing disappointing sales and rising pressures. Brian Niccol, the former CEO of Chipotle, will take over on September 9. The leadership change follows a 3% global sales drop in the last quarter, with a 14% plunge in China, driven by rising prices and boycotts related to the Israel-Gaza conflict. Activist investors and internal pressures accelerated the decision. Niccol, known for revitalizing Chipotle, is seen as a crucial leader for Starbucks as it navigates a pivotal moment in its history. Shares in Starbucks surged to 20% following the announcement.
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