Starbucks' shares soared more than 20 per cent after the US-based coffee chain announced it is replacing chief executive Laxman Narasimhan to try to reverse declining sales.
The company announced he will be replaced by Chipotle Mexican Grill chief Brian Niccol. Under Mr Niccol, shares in Chipotle have surged more than 200 per cent in five years.
Starbucks said Mr Narasimhan was to step down from his position immediately, with Mr Niccol due to begin his role as chief executive on September 9.
Starbucks' stock was up 24.50 per cent higher at $95.90 a share when trading closed in the US on Tuesday. Shares in Chipotle were down 7.53 per cent.
“Like all of us at Starbucks, [Mr Niccol] understands that a remarkable customer experience is rooted in an exceptional partner experience,” Starbucks chairwoman Melanie Hobson said in a statement.
Mr Narasimhan's abrupt departure comes less than two years into his tenure. Shares in the coffee chain have slumped 7.5 per cent in the last year.
Weakening sales led former Starbucks chief executive Howard Schultz to publicly call on the company to address its US operations in a lengthy LinkedIn post in May.
Last month, Starbucks reported its third-quarter revenue had missed expectations due to declining demand in the US and China.
During an earnings call, Mr Narasimhan also noted persistent challenges in the Middle East, South-East Asia and parts of Europe. Overall, global same-store sales fell 3 per cent.
The move also comes less than a month after activist investor Elliott Investment Management took a sizeable stake in Starbucks.
The investment firm has been privately pushing the company to find ways to get its stock price back up, according to a report by The Wall Street Journal.
Elliott said it viewed Tuesday's announcement “as a transformational step forward for the company”.
Killing of Qassem Suleimani
KILLING OF QASSEM SULEIMANI
When Umm Kulthum performed in Abu Dhabi
Known as The Lady of Arabic Song, Umm Kulthum performed in Abu Dhabi on November 28, 1971, as part of celebrations for the fifth anniversary of the accession of Sheikh Zayed bin Sultan Al Nahyan as Ruler of Abu Dhabi. A concert hall was constructed for the event on land that is now Al Nahyan Stadium, behind Al Wahda Mall. The audience were treated to many of Kulthum's most well-known songs as part of the sold-out show, including Aghadan Alqak and Enta Omri.
UAE currency: the story behind the money in your pockets
Top tips to avoid cyber fraud
Microsoft’s ‘hacker-in-chief’ David Weston, creator of the tech company’s Windows Red Team, advises simple steps to help people avoid falling victim to cyber fraud:
1. Always get the latest operating system on your smartphone or desktop, as it will have the latest innovations. An outdated OS can erode away all investments made in securing your device or system.
2. After installing the latest OS version, keep it patched; this means repairing system vulnerabilities which are discovered after the infrastructure components are released in the market. The vast majority of attacks are based on out of date components – there are missing patches.
3. Multi-factor authentication is required. Move away from passwords as fast as possible, particularly for anything financial. Cybercriminals are targeting money through compromising the users’ identity – his username and password. So, get on the next level of security using fingertips or facial recognition.
4. Move your personal as well as professional data to the cloud, which has advanced threat detection mechanisms and analytics to spot any attempt. Even if you are hit by some ransomware, the chances of restoring the stolen data are higher because everything is backed up.
5. Make the right hardware selection and always refresh it. We are in a time where a number of security improvement processes are reliant on new processors and chip sets that come with embedded security features. Buy a new personal computer with a trusted computing module that has fingerprint or biometric cameras as additional measures of protection.
Company Profile
Company name: Big Farm Brothers
Started: September 2020
Founders: Vishal Mahajan and Navneet Kaur
Based: Dubai Investment Park 1
Industry: food and agriculture
Initial investment: $205,000
Current staff: eight to 10
Future plan: to expand to other GCC markets
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
If you go
The flights
Emirates (www.emirates.com) and Etihad (www.etihad.com) both fly direct to Bengaluru, with return fares from Dh 1240. From Bengaluru airport, Coorg is a five-hour drive by car.
The hotels
The Tamara (www.thetamara.com) is located inside a working coffee plantation and offers individual villas with sprawling views of the hills (tariff from Dh1,300, including taxes and breakfast).
When to go
Coorg is an all-year destination, with the peak season for travel extending from the cooler months between October and March.
