Market Overview

Chipotle's Stock Surge Is Thanks To Its New CEO

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Since Brian Niccol became the CEO of Chipotle Mexican Grill, Inc. (NYSE: CMG) in March, Chipotle's stock price has only gone up. According to CNBC, Chipotle's stock move has been based solely on Niccol's reputation. Prior to Chipotle, Niccol was the CEO at Taco Bell, owned by Yum! Brands Inc. (NYSE: YUM), where he changed the image of the restaurant for better.

From introducing mobile order and pay to opening restaurants around the globe, Niccol transformed Taco Bell into a lifestyle brand. Similarly, Niccol plans to do the same at Chipotle with his prior success to make it more of a youthful and culturally relevant brand.

Niccol's Past Success

In the past three years, Chipotle was not doing so well. The stock fell to its lowest level following food safety concerns, and this was a day before Niccol was to be named CEO. The stock price was at $251.33 per share. As of today, Chipotle's stock is sitting at $459.35 per share.

In a press release by Yum! Brands, the CEO, Greg Creed, thanked Niccol on his success of always keeping Taco Bell culturally relevant, innovative and accessible for customers. Along with changing the restaurants slogan and introducing creative new food items, Taco Bell's sales were up 5 percent last year, growing nearly $500 million. 

With Niccol's optimistic qualities, he is known for encouraging employees to pitch any ideas they might have in return for creating an inclusive workplace. And, his past experience in consumer-focused businesses and relevant skill sets in areas like marketing and operations, Niccol can help address any of Chipotle's primary issues, like from the food safety incidents, says David Tarantino, an analyst at Baird.

Related Links:

Chipotle Has A New Game Plan: Is Wall Street On Board?

BMO: 3 Possible Scenarios For Chipotle Over The Next 5 Years

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Brian Niccol contributor contributors Greg CreedNews Management

 

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