Starbucks has announced that Chipotle CEO Brian Niccol will become its new chairman as part of a major restructuring.
The coffee chain has come under pressure from activist investor Elliott Investment Management to improve its performance and share price.
Starbucks shares rose 10 percent in premarket trading following the news, while Chipotle shares fell 8 percent.
Chipotle CEO Brian Niccol (pictured) becomes new CEO of Starbucks
The Seattle-based coffee chain is under pressure from activist investors
Niccol will assume his new role on September 9, replacing current CEO Laxman Narasimhan, just a year and a half after he took over the role.
Starbucks has been negotiating with Elliott Investment Management for weeks about the company’s declining sales and operational problems.
Just last week, another activist investor, Starboard Value, acquired a stake in the Seattle-based company, the Wall Street Journal reported.
