Starbucks(US:SBUX) The Motley Fool·2024-08-15 20:25Group 1 - Starbucks shares surged approximately 25.4% following the announcement of Brian Niccol as the new CEO, replacing Laxman Narasimhan after just 17 months [1][2] - Niccol is recognized for his successful turnaround of Chipotle, which saw its stock rise about 800% since his arrival, leading investors to hope for similar results at Starbucks [1][2] - The decision to appoint Niccol was positively received by Wall Street, with Deutsche Bank and TD Cowen upgrading the stock to a buy, labeling it a "home run hire" and "hall of fame" CEO hire respectively [2] Group 2 - Starbucks has faced challenges, including two consecutive quarters of declining comparable sales and profits, alongside complaints regarding slow service and changes in brewing methods [2][3] - The company is also experiencing increased competition in China from lower-priced alternatives, indicating a tough road ahead for recovery [3] - While a turnaround is expected to take years, the appointment of Niccol is viewed as a promising initial step, with his leadership set to begin on September 9 [3]