Chipotle CEO Brian Niccol to Join Starbucks
Big news in the business world as Chipotle’s CEO, Brian Niccol, announces he will be leaving his role at the company on August 31 to take on the position of CEO at Starbucks. This unexpected move sent Chipotle’s stock plummeting more than 10% on Tuesday.
Niccol took over as Chipotle’s CEO in March 2018 and during his tenure, the company’s stock has soared over 770%. The board of Chipotle has named Chief Operating Officer Scott Boatwright as interim CEO, and Chief Financial Officer Jack Hartung, who was planning to retire, will now stay with the company to assist with the transition.
“What we saw with Brian was someone who’s, quite honestly, been there done that — through all sorts of market environments, all sorts of cycles,” said Mellody Hobson, lead independent director at Starbucks. “When I talked to him I remember him saying, ‘I know what to do.’
Despite the CEO shakeup, Chipotle has reported strong second-quarter earnings with revenue topping analyst estimates at $2.97 billion. Net sales increased by 18.2% and same-store sales were up by 11.1%.
Niccol, who previously served as the CEO of Taco Bell under Yum Brands, has been praised for leading Chipotle through challenging times, including a foodborne illness scandal and the pandemic.
While some analysts have expressed caution about the CEO change, calling it potentially detrimental in the short term, others see it as an opportunity to inject new ideas into the company for long-term growth.
Stay tuned to Extreme Investor Network for more updates on this developing story.