10:44 AM EDT, 08/13/2024 (MT Newswires) -- Starbucks' ( SBUX ) confidence in Brian Niccol as its new chief executive is "understandable," but his challenge at the coffee chain is to connect with a new customer, Wedbush Securities said in a note to clients Tuesday.

Starbucks ( SBUX ) said earlier in the day that Niccol will join as CEO and chair, effective Sept. 9, succeeding CEO Laxman Narasimhan. Niccol currently serves as Chipotle Mexican Grill's ( CMG ) chair and CEO.

Chipotle Mexican Grill ( CMG ) said Chief Operating Officer Scott Boatwright will serve as interim CEO following Niccol's departure, while Chief Financial Officer Jack Hartung will stay with the company as president of strategy, finance and supply chain.

"We credit both leaders with CMG's turnaround (in addition to Brian Niccol), and view the company as both in a good place and in good hands," Wedbush said.

Starbucks ( SBUX ) shares were up 21% in recent Tuesday trading, while Chipotle Mexican Grill ( CMG ) fell 12%.

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