Chipotle Mexican Grill, Inc. CMG's announcement that it tapped Yum! Brands, Inc. YUM-owned Taco Bell CEO Brian Niccol as its new CEO sent Chipotle's stock higher by more than 15 percent. While some on Wall Street support the hiring, CNBC's Jim Cramer said Niccol represents the anithesis of Chipotle's values.
What You Need To Know
Niccol will be leaving his post as CEO of Taco Bell — a fast food chain whose vast list of ingredients includes countless hard-to-pronounce additives and preservatives — to join Chipotle, Cramer said Wednesday.
In comparison, Chipotle's motto of food with integrity not only conflicts with Niccol's experience, but the company as a whole "doesn't like Taco Bell," Cramer said.
Chipotle "railed against Taco Bell for years" without directly mentioning its name, Cramer said.
Why It's Important
Niccol's prior experience at Taco Bell could result in a "culture clash" at Chipotle, as he is an expert at delivering cheap food to consumers very quickly — and safely, to his credit, Cramer said. For Chipotle, Niccol is "probably the most opposite guy you could possibly find," he said.
"This is a staggering pick," Cramer said. "It's everything they don't stand for."
At the end of the day perhaps the only similarity between Taco Bell and Chipotle is they "both have buildings that purvey food," Cramer said.
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