Starbucks appoints Chipotle's Brian Niccol as CEO amid activist pressure

- Starbucks appoints Chipotle Mexican Grill's Brian Niccol as new CEO amidst pressure from activist investor Elliott Investment Management.

- Niccol succeeds Laxman Narasimhan, tasked with revitalizing the coffee giant, while Starbucks stock struggles, dropping 20% in five years despite the S&P 500's 80% increase.

- Elliott pushes for performance enhancement and governance improvements at Starbucks, proposing board expansion, as negotiations continue post-Niccol's appointment.

Starbucks announced the appointment of Brian Niccol, the former head of Chipotle Mexican Grill, as its new CEO on Tuesday in response to activist investor Elliott Investment Management's pressures. Niccol takes over from Laxman Narasimhan, who was brought in from Reckitt, aiming to revamp the company. Despite the change, Starbucks' stock has faced challenges, declining by 20% over the past five years, contrasting sharply with the S&P 500's significant gains. Elliott, a major shareholder, has been advocating for performance enhancements and governance reforms, including board expansion, as talks progress following Niccol's installment. Starbucks shares surged by 10% in premarket trading, while Chipotle's stock dropped by 8%. The negotiations with Elliott, including the potential addition of Jesse Cohn to the Starbucks board, remain uncertain.