Is the Third CEO the Charm for Starbucks?

Starbucks announced its third CEO in 18 months. Wait times are longer, prices have risen, and the brand faces pressure from activist investors and unhappy unions. Global same-store sales have declined by 3% throughout 2024. Founder Howard Schultz believes the key to resolving these issues lies in-store, focusing on innovation and customer experience rather than just data. Though Schultz no longer holds a formal role since April 2023, his influence remains.

Enter Brian Niccol, the new CEO who previously revitalized Yum Brands’ Taco Bell and Chipotle Mexican Grill. Can he bring the same energy and growth that Schultz once did? The market certainly seems to think so, with Starbucks shares rising by 10% and Chipotle shares falling by nearly 10% following the announcement, a clear sign of the market's cautious optimism.