Chipotle Stock Sinks As CEO Heads to Starbucks
Chipotle stock is plunging Tuesday after the burrito chain said its CEO Brian Niccol is leaving to take the top spot at Starbucks. Here's what you need to know.


Chipotle Mexican Grill (CMG) stock is sinking in Tuesday's trading after the quick-service restaurant chain announced CEO Brian Niccol is leaving the company, effective August 31, after he accepted a role as chief executive officer at Starbucks (SBUX).
"I'm incredibly proud of the work that has been accomplished since I joined Chipotle in 2018," Niccol said in a statement. "The strategic priorities this team has put in place have positioned Chipotle to win today and enable future growth. It's hard to leave such a great company and all of the talented people I've had the pleasure to work with, but I depart knowing the business is in great shape and poised for growth with a strong, experienced leadership team."
During his tenure at Chipotle, which began in March 2018, Chipotle's share price grew roughly sevenfold.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Chipotle has named Scott Boatwright as interim CEO. Boatwright joined the burrito chain in 2017 and currently serves as its chief operating officer.
"I have the utmost confidence in our five key strategies and I'm excited for the new opportunity to lead the business moving forward," Boatwright said. "We have a world-class organization full of talented leaders who are passionate about our brand and purpose and excited for the long-term opportunity to grow to 7,000 restaurants in North America and expand internationally."
Is Chipotle stock a buy, sell or hold?
Chipotle's performance on the price charts under Niccol's tenure has made it one of the best stocks to buy in recent years. However, shares have struggled since the company underwent a 50-to-1 stock split in June, down more than 20%.
Still, Wall Street is bullish on the consumer discretionary stock. According to S&P Global Market Intelligence, the average analyst target price for CMG stock is $63.03, representing implied upside of 24% to current levels. Meanwhile, the consensus recommendation is Buy.
Financial services firm Argus Research is one of those with a Buy rating on CMG stock and a $60 price target.
"We believe that Chipotle has a strong balance sheet (approximately $807 million in cash and cash equivalents at the end of Q2) along with solid mobile ordering and delivery platforms," said Argus analyst John Staszak in a July 25 note. "While some consumers might be deterred by Chipotle's relatively high prices, we anticipate the company will gain market share compared to more expensive full-service restaurants."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Ask the Editor — Tax Questions on Inherited IRAs
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the rules on inheriting IRAs.
-
I Asked Experts When It's Worth Splurging on Beauty and Skincare — and When You Can Save
Smart Shopping Experts agree that while you don't have to spend three figures on your products, some higher-priced items have value.
-
Recent Market Volatility Offers Valuable Lessons for Investors
Stocks will always rise and fall, but strategic investors can benefit through dollar-cost averaging, rebalancing in down markets and taking the long view.
-
Retiring Early? This Strategy Cuts Your Income Tax to Zero
When retiring early, married couples can use this little-known (and legitimate) strategy to take a six-figure income every year — tax-free.
-
Ditch the Golf Shoes: Your Retirement Needs a Side Gig
A side gig in retirement can help combat boredom, loneliness and the threat of inflation eroding your savings. And the earlier you start planning, the better.
-
The Best Aerospace and Defense ETFs to Buy
The best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Roth IRA Conversions in the Summer? Why Now May Be the Sweet Spot
Converting now would enable you to spread a possible tax hit over more than one payment while reducing future taxes.
-
A Financial Expert's Three Steps to Becoming Debt-Free (Even in This Economy)
If debt has you spiraling, now is the time to take a few common-sense steps to help knock it down and get it under control.
-
I'm an Insurance Expert: This Is How Your Insurance Protects You While You're on Vacation
Here are three key things to consider about your insurance (auto, property and health) when traveling within the U.S., including coverage for rental cars, personal belongings and medical emergencies.
-
Stock Market Today: It's 'Most Sectors Go' Ahead of Independence Day
The resilience trade continues to work, even for sectors and stocks with specific uncertainties.