Guacamole with your frappuccino? It’ll now cost extra. Yesterday, StarbucksSBUX

announced they’ve poached Chipotle’sCMG

CEO Brian Niccol to lead turnaround efforts. The announcement shook both stocks, sendingCMG

dropping ~10% andSBUX

rising ~25%. Shareholders have high expectations, banking on Niccol’s “proven track record” to revive the downtrodden coffee behemoth.

• During Niccol’s transformative six-year stint at Chipotle, he doubled the company’s revenue, increased profits sevenfold, and pumped the stock 800% — all while improving employee wages and benefits.
• Meanwhile, Starbucks has struggled with softening demand in the US and China — plummeting the stock by 21% under the existing CEO’s tenure (before yesterday’s announcement).

Change is brewing: As activist pressure mounts, Starbucks’ former Board Chair touted Niccol as having “been there done that — through all sorts of market environments, all sorts of cycles” (CNBC). Leveraging his Chipotle playbook, Niccol could enhance Starbucks’ mobile ordering system — a growth driver forCMG

but a performance scapegoat forSBUX

. Additionally, his track record of menu innovation could spark renewed interest with new, exciting offerings. The coming months will reveal whether this bold move will percolate success or leave a bitter aftertaste.