12:20 PM EDT, 08/13/2024 (MT Newswires) -- Starbucks ( SBUX ) has poached Chipotle Mexican Grill ( CMG ) Chief Executive Brian Niccol, who will assume the top role at the coffee giant next month.

Niccol will leave the burrito chain at the end of August to join Starbucks ( SBUX ) as chairman and CEO, effective Sept. 9, the companies said in separate statements Tuesday. At Starbucks ( SBUX ), he will take over as CEO from Laxman Narasimhan, who is stepping down from the coffee chain with immediate effect, having served in the post since March 2023.

Starbucks' ( SBUX ) board chair, Mellody Hobson, will become lead independent director. Chief Financial Officer Rachel Ruggeri will serve as interim chief until Niccol joins the company.

"Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth," Hobson said in a statement. "Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world."

Niccol departs Chipotle after serving as CEO since 2018 and as chairman of its board since 2020. Chief Operating Officer Scott Boatwright will become Chipotle's interim CEO, while CFO Jack Hartung, who last month disclosed plans to retire from the company in March, agreed to remain indefinitely as president of strategy, finance and supply chain. Scott Maw, Chipotle's lead independent director, was appointed chairman, effective immediately.

"Thanks to our robust talent planning process, we are well-prepared for events like this due to the deep bench within the organization," Maw said. "The board is excited to see other strong leaders expand their roles and provide growth and development for more people in the organization."

Shares of Starbucks ( SBUX ) surged 21% in midday trade, while Chipotle's stock declined 9.5%.

In a Tuesday client note, Wedbush Securities said the euphoria demonstrated by Starbuck's stock jump is "premature," given the challenge Niccol faces in connecting with new customers. Niccol's previous experience with Taco Bell stood him in good stead with Chipotle, but Starbucks ( SBUX ) is a global business with a long history of product innovation and brand positioning, according to the brokerage. Wedbush believes that Chipotle is in a "good place" and in "good hands."

At the end of July, Starbucks ( SBUX ) reported lower fiscal third-quarter results on a yearly basis with sales missing market estimates, but the company maintained its full-year outlook. Chipotle reported second-quarter results last month that rose annually and topped market estimates.

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