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Hello there! A doctor who says he's Benjamin Button'd himself by 20 years shared the seven foods he eats weekly. And yes, you can even indulge that sweet tooth.
In today's big story, it's out with the old and in with the new CEO at Starbucks.
What's on deck:
- Markets: What the state of Warren Buffett's company says about the wider economy.
- Tech: It's been six months, and the Apple Vision Pro still feels like a letdown.
- Business: One of the hottest trends in real estate involves luxury brands like Porsche and Lamborghini.
But first, your new CEO is ready.
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The big story
Putting on a fresh pot
As businesses complain about consumers cutting back, one of the biggest chains in the world is doing some cutting of its own at the highest level.
Starbucks announced CEO Laxman Narasimhan was stepping down after less than two years on the job. Chipotle CEO Brian Niccol was tapped to lead Starbucks' turnaround efforts.
While Narasimhan's exit was abrupt — the move was effective immediately — it's not surprising. His short tenure at the top was a disastrous stretch for the coffee chain, writes Business Insider's Grace Dean.
Same-store sales — a key metric — have been in a freefall under Narasimhan. Starbucks saw a 3% drop in global comparable store sales during its most recent quarter compared to a 10% bump a year ago.
But sales weren't the only thing going down under Narasimhan. The company's share price dropped more than 20%, and it wasn't long before Wall Street noticed. Activist investors began circling the waters, with Elliott Management and Starboard Value taking stakes.
So, on the eve of its ubiquitous pumpkin-spice latte season, Starbucks made the abrupt change without a look backwards. In the release announcing the news, Howard Schultz, Starbucks' chairman emeritus and three-time CEO, made no mention of Narasimhan in his statement.
Starbucks' turnaround is in the hands of a man familiar with crafting comebacks.
Niccol fostered big changes during stints at Taco Bell and Chipotle, writes BI's Alex Bitter. His time at the latter has been a bit polarizing, though. While some gym bros might bristle at the state of Chipotle's portion sizes, the market is a big fan.
The Mexican fast-casual chain has been a bright spot in a tough industry, with its stock up more than 24% before Niccol's departure. And despite not joining until September 9, Niccol's impact is already being felt at Starbucks, which saw its share price rise almost 25% on Tuesday.
At Starbucks, Niccol won't need to navigate a brand crisis like he did with Chipotle in the wake of its E. coli outbreak. Instead, it'll be operational issues he'll need to solve.
One of the main problems the coffee chain faces is that its key asset — customizable drinks — also gives it major headaches. It's already trying to address this with its "Siren Craft System" meant to streamline how its coffeeshops address orders.
Whatever types of changes Niccol implements, we've already got some ideas. BI's Katie Notopoulos has a wish list for Niccol to consider.
News brief
Top headlines
- Japan's prime minister is resigning, under pressure from scandal.
- The US naval presence around the Middle East is getting a firepower boost. Here are the warships already there and what's on the way.
- New poll: Trump is trailing Kamala Harris on one of the most crucial issues.
- The 'crazy' fix for Google's monopoly that investors are whispering about.
- Nate Silver on the 2024 race: 'It's no longer Trump's election to lose.'
- Elon Musk's daughter Vivian slams Walter Isaacson's Musk biography, saying it portrays her as her father's 'villain backstory.'
3 things in markets
- Debunking some of the biggest recession fears. Last week's mini market meltdown reignited fears the economy could suffer a downturn. But Joe Quinlan, head of CIO Market Strategy for Merrill and Bank of America Private Bank, detailed why concerns like the Fed being behind the curve or the pullback on the AI trade are overblown. Why you shouldn't worry about these six economic pitfalls. (Not everyone is so optimistic, though.)
- The economy (Warren's version). Berkshire Hathaway has gotten so big and wide reaching it's sometimes viewed as a mini version of the US economy. The company's financial results showed consumer-related businesses returning to growth. Go inside the numbers.
- A Goldman Sachs' portfolio manager on the importance of selectivity with small-cap stocks. A likely September interest-rate cut means small caps are set to rise. But Greg Tuorto said investors who buy small-cap indexes will miss out on the biggest growth opportunities. Here are six of his top picks.
3 things in tech
- Google's Pixel event was giving OpenAI vibes. Back in May, OpenAI CEO Sam Altman took a dig at Google I/O's "aesthetic." Google may have taken it to heart. Its Made By Google event on Tuesday featured dim lighting and a simple setup with wood in the background — a page out of OpenAI's playbook.
- Nvidia's latest chip delay isn't shocking. That's according to Dylan Patel, SemiAnalysis' chief analyst. According to Patel, though, the delay still "shakes the entire world." He spoke to BI about the impact of the delay, and how to observe Nvidia like a pro.
- Apple's Vision Pro is stuck in neutral. The headset has been out for more than six months, but we're still waiting on a killer app that will actually make the device useful. The longer we have to wait, the harder it'll be for Apple's plans for the Vision Pro to succeed.
3 things in business
- If a Mercedes-Benz car isn't enough, consider a Mercedes-Benz apartment. There's a new trend in home buying: High-end brands from Mercedes to Dolce & Gabbana are making their own condominiums. These so-called branded residences are here to stay, and developers are laying the groundwork for the towers everywhere from Dubai to Miami.
- You're not the only one annoyed about locked-up merch. Some Walmart and Walgreens stores are locking up so much stuff that delivery workers are avoiding them altogether. The tactic, used to prevent theft, is pushing away workers who have to shop and deliver orders on a deadline.
- Stop calling Gen Z lazy. The youngest generation is always a punching bag for workplace stereotypes. Young workers are lazy, entitled, and unmotivated — or so the thinking goes. But according to HR experts, they just need to be mentored and trained.
In other news
- Who gets the Hamptons house? How rich Americans give homes to their children without causing feuds.
- Replika lets you buy an AI girlfriend or boyfriend — and its average user age is surprising.
- Everyone wants to live in a Nancy Meyers home, but it won't happen overnight.
- New book says Bill Gates was envious of Steve Jobs' magnetism: 'How does he do that?'
What's happening today
- Cisco Systems, UBS, and other companies are reporting earnings.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London.
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