On Tuesday, August 13th Starbucks relived CEO Laxman Narasimhan of his duties approximately 16 months after naming him to the post. One of the primary reasons was the company’s stock dropped 22% since his appointment in March 2023.
The coffee company replaced him with Chipotle CEO Brian Niccol. Prior to his work at Chipotle, Niccol oversaw Taco Bell’s “Live Man” era. From there he went to Chipotle to help the company regain lost momentum coming off its E. coli concerns. Under Niccol’s leadership, Chipotle 2018 market value of $8.9 billion rose to its August 12th value of $76.5 billion.
After the announcement of the change in leadership, Starbucks’ stock jumped 24.5% – its largest one-day gain in company history. The financial impact was so large it wiped out an entire year’s worth of losses.
Conversely, Chipotle’s stock dropped 7.5%.
Here is the leadership lesson we can all learn from: John Maxwell was right – everything really does rise and fall on leadership.
By getting a better leader, Starbucks stock had a record one-day increase and made their company profitable for 2024.
If your organization needs to solve a problem, regain lost momentum, change direction, or get a big win, learn from Starbucks. The answer to every problem is a person. Getting a better leader is what your organization needs.
Just ask Starbucks.
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