HONG KONG -- Starbucks' abrupt replacement of its CEO has sent shock waves through the industry and stock market, with its new chief inheriting a host of challenges -- one of the biggest being a deep slump in China.
The global cafe chain's now-former CEO Laxman Narasimhan was ousted with immediate effect in favor of Brian Niccol, hitherto the chief of U.S-based restaurant chain Chipotle Mexican Grill. The U.S. stock market reaction on Tuesday underscored the magnitude of the surprise move: Starbucks shares soared 24.5% while Chipotle's dropped 7.5%.
