Starbucks (NASDAQ:SBUX) shares rose on Tuesday after the company announced that Brian Niccol would take over as chairman and CEO of the coffee chain.

Niccol will replace Laxman Narasimhan as Starbucks’ next CEO. Narasimhan submitted his immediate resignation from the company.

Starbucks will not appoint Niccol as its new CEO until September 9, 2024. In the meantime, SBUX’s current CFO Rachel Ruggeri will serve as interim CEO.

SBUX shareholders are celebrating today’s news as Niccol brings a strong resume including serving as current Chairman and CEO of Chipotle (NYSE:CMG). During his six-year tenure as head of the Mexican fast-food chain, sales doubled, profits increased sevenfold, and CMG stock rose more than 800%.

How this affects SBUX stock today

The news that Niccol will be Starbucks’ next CEO is causing a brisk trading in the company’s stock. At the time of writing, there are more than 95 million SBUX shares outstanding, a huge jump from the average daily trading volume of about 12 million shares.

SBUX shares are up 20.1% since Tuesday morning.

Investors should stay tuned to receive the latest news from the stock market in the future!

We have all the hottest stock market news for Tuesday. This includes what the shares of ON Holding (NYSE:ONE ONE), Sea-Limited (NYSE:IT) And Home Depot (NYSE:HD) Shares are moving today. You can read all about it under the following links!

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At the time of publication, William White had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.

At the time of publication, the editor in charge did not hold any positions (either directly or indirectly) in the securities mentioned in this article.