Goodbye Chipotle, Hello Starbucks. Here's What Investors Need to Know After the Recent CEO Switch.

Investors in Starbucks (NASDAQ: SBUX) and Chipotle (NYSE: CMG) were met with a bit of a shock recently when it was announced that Chipotle CEO Brian Niccol would be leaving the company and taking the reins at Starbucks after its CEO, Laxman Narasimhan, was ousted. Niccol was highly successful at Chipotle, while Narasimhan was not so lucky in his tenure overseeing Starbucks.

The market's reaction to the news could not be more different for the two companies' share prices. Starbucks' stock jumped nearly 22% in a day while shares of Chipotle fell more than 12%. So what does this mean for the two companies' futures? Let's consider.

Any way you slice it, Niccol was a great CEO at Chipotle. Under his tenure of fewer than seven years, the company saw its revenue more than double and its stock price gain 800%. Take a look at this chart, which shows the company's revenue and earnings-per-share (EPS) growth since he took over in 2018.

Continue reading


Source Fool.com