Starbucks announced that Brian Niccol, the CEO of Chipotle, will become the company’s next CEO, replacing Laxman Narasimhan, who has held the position for more than a year.

Starbucks released a statement announcing Narasimhan’s resignation as CEO and board member “with immediate effect.”

But why did Starbucks replace Laxman Narasimhan? Here are the 4 major reasons:

1. Starbucks is facing widespread sales declines in its latest financial reports, and the company is striving to turn around its business. This has led to changes in leadership at the company.

2. The company’s shares were severely damaged by a brutal April earnings report, which prompted Narasimhan to vow a reset.

3. Starbucks has previously blamed its problems on hard market conditions in China and waning consumer sentiment.

4. The activist fund Elliott Investment Management, which acquired a stake in the chain and was looking for ways to increase the share price, has also been putting pressure on the company.

“The replacement of Laxman Narasimhan as Starbucks CEO is the result of growing dissatisfaction, particularly from activist investors, over the way the chain has been run,” Neil Saunders, managing director at GlobalData, in a statement said.

“While some of the slowdown can be attributed to a more sluggish consumer cutting back, much is also the result of a worsening store experience and a lack of innovation in areas like food,” he added.consumer cutting back, much is also the result of a worsening store experience and a lack of innovation in areas like food,” he added.