Starbucks announced yesterday that CEO Laxman Narasimhan will be stepping down after just 17 months in the role. The coffee giant is grappling with declining sales and growing investor dissatisfaction. Brian Niccol, the CEO of Chipotle, has been named the new chairman and CEO, effective September 9.

This leadership change comes as Starbucks faces significant challenges, including a 3% drop in third-quarter same-store sales in the U.S. and a 14% decline in China, where competition from lower-cost alternatives is intensifying. Additionally, the company has been under pressure from activist investors calling for change. The news follows an open letter from former CEO Howard Schultz, who criticized the current leadership.

Under Niccol’s leadership, Chipotle saw a 14.3% revenue increase in 2023. Following the announcement, Starbucks’ shares surged 24%, marking its best performance since its 1992 IPO, while Chipotle’s shares fell by 7%.