Shares of (NASDAQ: SBUX) soared nearly 25% after the coffee chain announced that it was replacing its CEO with Brian Niccol, the current CEO of Chipotle Mexican Grill (NYSE: CMG). Niccol will officially begin his new job on Sept. 9.

While this move certainly has had a positive effect on the stock in the near term, let's look at why it should be good for investors over the long term as well.

It's no secret that Starbucks had been struggling under (now former) CEO Laxman Narasimhan. Its same-store sales in the U.S. had turned negative, and there were both customer and worker complaints over stores not being fully staffed and long wait times. Meanwhile, its second-largest market, China, has been under pressure from increased competition and a general lackluster consumer environment in the country.

Continue reading

Source Fool.com