Starbucks has announced that Chipotle CEO Brian Niccol will become its new chief executive in a major shakeup.
The coffee chain has faced pressure from activist investor Elliott Investment Management to improve its performance and share price.
Starbucks shares rose 20 percent in early trading following the news, while Chipotle shares fell more than 9 percent.
Chipotle CEO Brian Niccol (pictured) will become Starbucks’ new CEO
Seattle-based coffee chain faces pressure from activist investors
Niccol will begin his new role on September 9, replacing current CEO Laxman Narasimhan just a year and a half after taking up the post.
Starbucks has been in talks with Elliott Investment Management for weeks over slowing sales and operational issues at the company.
Last week, another activist investor, Starboard Value, acquired a stake in the Seattle-based company, the Wall Street Journal reported.
Starbucks reported disappointing results in its latest earnings report, which showed a 2 percent drop in same-store sales.
Profits fell 7.5 percent in the second quarter, with the company crediting higher wages for its U.S. staff, which offset its higher prices.