Shares of Chipotle Mexican Grill (CMG) are falling Tuesday morning following information that CEO Brian Niccol will take up the mantle of Starbucks (SBUX) chief government and chairman in September. Starbucks CEO Laxman Narasimhan has stepped down on this stunning C-suite shakeup.
Wedbush Securities managing director Nick Setyan and AB Bernstein senior analyst Danilo Gargiulo come on Catalysts to speak concerning the direction of Chipotle’s brand, particularly as core leadership like CFO Jack Hartung has opted to remain onboard as an alternative of retiring in March 2025.
“Take into consideration the significance of the ‘Chipotlanes’ [drive-thru] that’s tapping into the extra convenient-oriented client. Properly, these kinds of shoppers are actually rather more acquainted with the model, and we’re seeing that Chipotle is now working additionally within the small city, in college cities, areas the place beforehand one would have by no means thought that Chipotle may be working,” Gargiulo states. “And so proper now we’re speaking a few doubtlessly a cookie cutter strategy that Chipotle will should be deploying into extra areas and broaden the variety of models…”
Setyan believes Chipotle to be “in an excellent place” and “in superb arms” with Hartung and COO Scott Boatwright who might be appearing as interim CEO.
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This put up was written by Luke Carberry Mogan.
