Chipotle Is Down 25% After Losing Its CEO: My Prediction for What Comes Next
A big shake-up just hit Chipotle Mexican Grill (NYSE: CMG). Longtime chief executive officer (CEO) Brian Niccol just announced a surprising departure to Starbucks. Niccol has been instrumental in delivering a turnaround for Chipotle after its foodborne illness outbreaks, leading the stock to 800% returns since joining in 2018, making it one of the best-performing stocks in the world over that time.
Leaving a company -- especially for a competitor -- will always upset investors. It is no surprise, then, to see Chipotle stock falling on this news. In fact, the stock has taken a 25% dive since its recent stock split in June. This is not the worst drawdown ever for Chipotle, but one of the most significant in the last 10 years. Here's my prediction for what comes next with the Brian Niccol era over.
On Aug. 13, Starbucks announced it had hired Brian Niccol away from Chipotle as its CEO, effective immediately. This was a shocker for two reasons. First, Starbucks had not previously told investors it was looking for a new CEO. Second, Chipotle's valuation was similar to that of Starbucks at the time of the announcement, with a market cap range of $75 billion to $100 billion. It also has a clearer path to store expansion and has put up much better performance over the last few years compared to the coffee giant.
Source Fool.com
Chipotle Mexican Grill Inc. Stock
The stock is one of the favorites of our community with 77 Buy predictions and 1 Sell predictions.
With a target price of 2357 € there is potential for a 4580.3% increase which would mean more than doubling the current price of 50.36 € for Chipotle Mexican Grill Inc..
