Shares of Chipotle Mexican Grill (CMG) are falling Tuesday morning after news that CEO Brian Niccol will take over as CEO and chairman of Starbucks (SBUX) in September. Starbucks CEO Laxman Narasimhan has stepped down in a surprise C-suite reshuffle.
Wedbush Securities Managing Director Nick Setyan and AB Bernstein Senior Analyst Danilo Gargiulo sit down with Catalysts to discuss the direction of the Chipotle brand, especially since key executives like CFO Jack Hartung opted to stay on rather than retire in March 2025.
“Think about the importance of the 'Chipotlanes' [drive-thru] “That's tapping into the more convenience-oriented consumer. Well, those consumers are much more familiar with the brand now, and we're seeing Chipotle now working in small towns, in college towns, areas where you would never have thought Chipotle would work before,” Gargiulo said. “And so now we're talking about a potentially cookie-cutter approach where Chipotle has to roll out to more areas and expand the number of units…”
Setyan is confident that Chipotle is “in a very good position” and “in very good hands” with Hartung and COO Scott Boatwright, who will serve as interim CEO.
Click here to watch the full episode of Catalysts for more expert insights and the latest market activity.
This post was written by Luke Carberry Mogan.
