When Brian Niccol became chief executive of Chipotle Mexican Grill in early 2018, he took the reins of a burrito chain struggling to win back customers after a string of poorly handled food safety incidents, a sloppy quality control system, and a lack of new dishes to entice diners. Just a few years later, Chipotle's annual sales have doubled to almost $10 billion, with growth and profit continuing to outpace rivals this year.
Starbucks, whose board on Tuesday announced the ouster of CEO Laxman Narasimhan and his replacement by Niccol, is clearly hoping he'll work the same kind of magic to revitalize the struggling coffee chain. And Wall Street seems to think he will: Starbucks shares rose 20% on the news in morning trading, while Chipotle's stock dipped 11%.
Starbucks and Chipotle are very different companies. The coffee chain is a much larger and more complex, operating in 86 countries and generating about $36 billion in revenue in the last year. Chipotle, on the other hand, is almost entirely U.S.-focused, with 2023 revenue right around $10 billion. But Niccol has a strong track record as a fixer, and his brand-building Midas touch has already won investors' confidence.
