Chipotle CEO Brian Niccol Jumps Ship to Starbucks, Sending Shares Plummeting

Chipotle CEO Brian Niccol to Take Helm at Starbucks

In a surprising move that sent shockwaves through the restaurant industry, Chipotle Mexican Grill announced today that CEO Brian Niccol will be departing to become the new chief executive of Starbucks. The news caused Chipotle’s stock to plummet as much as 10% in premarket trading.

Niccol, who has led Chipotle since March 2018, oversaw a remarkable turnaround for the fast-casual chain. During his tenure, the company’s stock soared by over 700%, driven by strong same-store sales growth and increased customer traffic.

In the wake of Niccol’s departure, Chipotle has appointed Chief Operating Officer Scott Boatwright as interim CEO. Boatwright, who has been with the company since 2017, will be supported by Chief Financial Officer Jack Hartung, who has agreed to stay on indefinitely to assist with the transition.

Mellody Hobson, former board chair at Starbucks and now lead independent director, expressed confidence in Niccol’s ability to lead the coffee giant. “Brian’s experience and proven track record make him well-equipped to navigate various market environments and cycles,” Hobson stated.

Niccol’s exit comes on the heels of Chipotle’s strong second-quarter earnings report in July. The company posted revenue of $2.97 billion, with net sales increasing by 18.2% and same-store sales growing by 11.1%. Niccol was instrumental in guiding Chipotle through challenges including a foodborne illness scandal and the COVID-19 pandemic.

Prior to his role at Chipotle, Niccol served as CEO of Yum Brands’ Taco Bell, further solidifying his expertise in the quick-service restaurant sector.

As Chipotle begins its search for a permanent CEO, the industry will be watching closely to see how this leadership change impacts both Chipotle and Starbucks in the competitive fast-food landscape.