Starbucks, struggling with weak demand and disgruntled investors, announced on Tuesday that Laxman Narasimhan is stepping down from its CEO role after a little more than a year in the job.

The Seattle coffee giant said Brian Niccol, the chairperson and chief executive of Chipotle, will become Starbucks' chairperson and CEO on Sept. 9.

Starbucks shares jumped more than 13% before the market opened.

Narasimhan, a longtime PepsiCo executive who has also served as the CEO of Reckitt, a U.K.-based consumer health company, became Starbucks' CEO in March 2023. He succeeded Howard Schultz, the longtime Starbucks leader and chairperson emeritus who came out of retirement in 2022 to serve as the company's interim CEO.

But investors quickly soured on Narasimhan as the company's sales weakened and it dealt with multiple issues, including competition from lower-cost competitors in China and boycotts in the Middle East and elsewhere due to its perceived support for Israel.

Mellody Hobson, the chair of Starbucks' board of directors, said Niccol had transformed Chipotle since becoming its CEO in 2018 by focusing on menu innovation, operational excellence, and digital transformation.

The company noted that his work at Chipotle had "driven significant growth and value creation," citing revenue that has nearly doubled and rising profit.

"Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth," Hobson said in a statement. "Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience."

Schultz said he has long admired Niccol.

"I believe he is the leader Starbucks needs at a pivotal moment in its history. He has my respect and full support," Schultz said in a statement.

Chief financial officer Rachel Ruggeri will serve as interim CEO until Niccol starts his new role.