Chipotle CEO Brian Niccol leaves for Starbucks, stock drops 7%.

From CNBC: 2024-08-13 16:00:32

Chipotle stock dropped by 10% as CEO Brian Niccol announced his departure to become Starbucks CEO. The stock closed 7% lower. Niccol, who took over in 2018, saw Chipotle stock rise by over 770%. COO Scott Boatwright is now interim CEO, with CFO Jack Hartung staying indefinitely to aid in the transition.

Despite the leadership change, Chipotle reported strong second-quarter earnings, exceeding analyst expectations with $2.97 billion in revenue. Same-store sales grew by 11.1% during the quarter. Niccol, who managed Chipotle through crises, previously served as CEO of Taco Bell under Yum Brands.

Analysts are cautious about the CEO change, with some viewing it as a short-term negative but potentially beneficial in the long run. Chipotle has maintained strong same-store sales growth and customer traffic, outperforming many competitors. Mellody Hobson praised Niccol’s leadership and experience in market fluctuations and strategic decision-making.



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