Chipotle’s stock (CMG) dropped at over 7% on Tuesday after it released information that its CEO, Brian Niccol, is leaving to take up the same position as a CEO at Starbucks (SBUX) in September.
Niccol assumed the role of Chipotle’s CEO in 2018, and the company’s COO, Scott Boatwright, will take over from him on an interim basis.
Niccol was instrumental in the turnaround of Chipotle following the E. coli crisis that began in 2015 and negatively impacted the company’s stock for years.
The company’s annual revenue was around $4.5 billion when Niccol joined Chipotle. That figure would have more than doubled to $9.9 billion by 2023. Chipotle’s stock has risen by over 240% over the past five years, compared to an 85% increase for the S&P 500.
Chipotle CFO Jack Hartung, who had planned to retire in 2025 amid the leadership transition, has decided to remain indefinitely as president of strategy, finance, and supply chain.
Bernstein senior research analyst Danilo Gargiulo claimed that Chipotle is well-positioned to take up the leadership change.
