Published: Wed, February 14, 2018
Economy | By

Shares of Chipotle Rally Following Announcement of New CEO

Shares of Chipotle Rally Following Announcement of New CEO

Niccol led Taco Bell to one of the most impressive performances in the fast-food sector over the last five years and is seen as a step in the right direction in restoring the Chipotle brand image.

Niccol has headed Taco Bell - the Mexican-fast-food brand of Louisville, Kentucky-based Yum!

Current CEO Steve Ells announced in November 2017 he would leave the chain when a suitable replacement was found.

"Naming Taco Bell's chief Brian Niccol as its new CEO was the best possible outcome for CMG's search, in our view, given his track record of innovation, expertise in marketing, menu development, operations, and digital", said Morgan Stanley analyst John Glass.

Niccol has served as CEO of Taco Bell for three years.

Turning to someone with Niccol's experience - he previously held leadership roles at Pizza Hut and consumer-products giant Proctor & Gamble - is good news to Chipotle investors, University of Denver assistant business professor Paul Seaborn said.

Chipotle is expected to officially announce the news later on Tuesday, according to a Wall Street Journal report.

Through a prepared statement, Niccol said he wants Chipotle to provide customer service that is consistently great. At its peak in 2015, the stock reached $757.

In addition, the CEO will bring much experience in digital innovation, as he introduced ordering and payment with mobile devices across all of the 7,000 locations Taco Bell has in the U.S.

Digital innovation will also likely be key for the 43-year-old as he looks to bring back diners who have deserted Chipotle in recent years amid a series of foodborne illness outbreaks.

The CEO of Taco Bell is moving to a rival restaurant chain.

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