Chipotle inventory fell as a lot as 10% in premarket buying and selling Tuesday as the corporate introduced CEO Brian Niccol can be leaving his position on Aug. 31 to change into CEO of Starbucks.
Niccol started as Chipotle CEO in March 2018. Chipotle inventory has risen greater than 700% since since he took over.
Chipotle’s board named Chief Working Officer Scott Boatwright as interim CEO. He is been on the firm since 2017. The board additionally introduced that Chief Monetary Officer Jack Hartung, who had introduced his intention to retire, would stick with the corporate indefinitely and help with the transition.
“What we noticed with Brian was somebody who’s, fairly truthfully, been there accomplished that — via all types of market environments, all types of cycles,” Mellody Hobson, who was the board chair at Starbucks however stepped right down to change into lead unbiased director as a part of Tuesday’s modifications, mentioned on CNBC’s Squawk Field. “After I talked to him I bear in mind him saying, ‘I do know what to do.'”
Chipotle has seen sturdy same-store gross sales development and visitors whereas different eating places have reported that customers are pulling again on buyer spending.
Chipotle reported second-quarter earnings in July that topped analyst estimates, with $2.97 billion in income. Internet gross sales climbed 18.2% through the quarter, with same-store gross sales up 11.1%.
Niccol helped lead Chipotle via a foodborne sickness scandal and oversaw the chain of eating places through the pandemic.
Earlier than taking on at Chipotle, Niccol was the CEO at Yum Manufacturers’ Taco Bell.
— CNBC’s Amelia Lucas contributed to this report.
