Why Starbucks Stock Popped Tuesday Morning, While Chipotle Stock Slumped
Shares of Starbucks (NASDAQ: SBUX) roared out of the gate on Tuesday, surging as much as 23.7%. As of 11:19 a.m. ET, the stock was still up 22.7%. At the same time, Chipotle Mexican Grill (NYSE: CMG) stock sank as much as 14.1% but was recently down 11.8%.
The catalyst that sent these high-profile names in the restaurant industry in different directions was news that nobody saw coming -- that Starbucks had poached Chipotle's superstar leader to engineer its turnaround.
In a press release Tuesday, Starbucks announced that Brian Niccol, currently CEO of Chipotle, had been appointed chairman and CEO of the coffee chain. Laxman Narasimhan will step down from his role as CEO and depart the board of directors effective immediately. CFO Rachel Ruggeri will serve as interim CEO. Niccol will begin in his new position on Sept. 9.
Source Fool.com
Starbucks Corp. Stock
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With a target price of 94 € there is a slightly positive potential of 9.29% for Starbucks Corp. compared to the current price of 86.01 €.
