Starbucks (SBUX) announced Tuesday that it has named Brian Niccol as its next chairman and CEO.

Niccol, who has been the CEO of Chipotle (CMG) since 2018, will join Starbucks on Sept. 9. Current Starbucks CEO Laxman Narasimhan, who took the helm in late March 2023, will step down immediately.

Starbucks CFO Rachel Ruggeri, who has served in the role since 2021, will be interim CEO.

Shares of Starbucks were up as much as 13% in pre-market trading following the announcement; Chipotle stock fell as much as 10% on the news.

Starbucks also announced Tuesday that Mellody Hobson, the chair of its board, will now serve as its lead independent director.

"Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth," Hobson said in a statement. "Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world."

News of Niccol's hire comes as Starbucks has been fending off activist investors including Elliott Investment Management and Starboard Value.

Late last month, the company reported another challenging quarter, with same-store sales falling 3% — the second-straight quarter of declines for this metric — while traffic fell 5%. US sales at Starbucks fell 2% during the quarter. Over the last year, Starbucks shares have dropped 23%.

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