Chipotle Stock Tumbles 10% as CEO Brian Niccol Exits for Starbucks; COO Takes Helm
Chipotle Stock Plunges as CEO Brian Niccol Departs for Starbucks
Chipotle Mexican Grill’s stock tumbled as much as 10% in premarket trading Tuesday following the announcement that CEO Brian Niccol will be leaving his position on August 31 to take the helm at Starbucks. Niccol, who has led Chipotle since March 2018, oversaw a remarkable 700% increase in the company’s stock price during his tenure.
In response to Niccol’s departure, Chipotle’s board has appointed Chief Operating Officer Scott Boatwright as interim CEO. Boatwright, who joined the company in 2017, will step into the role as the board begins its search for a permanent replacement.
Adding stability during this transition, Chief Financial Officer Jack Hartung, who had previously announced his intention to retire, will remain with the company indefinitely to assist with the leadership change.
Niccol’s impact on Chipotle has been significant. He successfully guided the restaurant chain through a foodborne illness scandal and the challenges of the COVID-19 pandemic. Under his leadership, Chipotle has consistently reported strong same-store sales growth and increased traffic, even as other restaurants have seen consumers tightening their spending.
The company’s recent financial performance reflects this success. In July, Chipotle reported second-quarter earnings that exceeded analyst estimates, with revenue reaching $2.97 billion. Net sales climbed 18.2% during the quarter, while same-store sales rose by 11.1%.
Mellody Hobson, who stepped down as Starbucks’ board chair to become lead independent director as part of Tuesday’s changes, praised Niccol’s experience on CNBC’s Squawk Box. She highlighted his ability to navigate various market environments and cycles, suggesting his readiness for the new role at Starbucks.
Before joining Chipotle, Niccol served as CEO of Taco Bell, part of Yum Brands. His move to Starbucks marks another significant shift in the fast-food and quick-service restaurant industry leadership landscape.
As Chipotle prepares for this transition, investors and industry observers will be closely watching how the company maintains its growth trajectory and market position under new leadership.
