What's Going On With Chipotle Mexican Grill Stock Today?

Author: Adam Eckert | August 14, 2024 09:29am

Chipotle Mexican Grill Inc (NYSE:CMG) shares are trading slightly higher Wednesday, bouncing back after falling 7.5% on Tuesday following the surprise departure of chairman and CEO Brian Niccol.

What Happened: Chipotle announced that Niccol is set to leave the company at the end of the month after he accepted the role of chairman and CEO of Starbucks Corp (NYSE:SBUX).

Niccol has served as Chipotle’s CEO since 2018 and as chairman of the board since 2020. Chipotle stock has more than tripled over the last five years under Niccol’s leadership.

Chipotle’s board appointed COO Scott Boatwright as Interim CEO. In addition, Jack Hartung agreed to remain with the company indefinitely as President of Strategy, Finance and Supply Chain to ensure a smooth transition. 

“I’m incredibly proud of the work that has been accomplished since I joined Chipotle in 2018,” Niccol said.

“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.”  

See Also: Brian Niccol Is The ‘Key To A New Starbucks’, Says Jim Cramer: ‘Turnaround Can’t Happen Overnight’

Chipotle shares sold off on the news, while Starbucks shares soared. Following the announcement, several analysts revised ratings and price targets on the stock.

• Truist Securities analyst Jake Bartlett maintained Chipotle with a Buy and maintained a price target of $69.

• Stephens & Co. analyst Jim Salera reiterated Chipotle with an Equal-Weight and maintained a price target of $61.

• Wedbush analyst Nick Setyan upgraded Chipotle from Neutral to Outperform and raised the price target from $54 to $58.

• Deutsche Bank analyst Lauren Silberman maintained Chipotle with a Buy and price target of $67.

• Stifel analyst Chris O’Cull maintained Chipotle with a Buy and maintained a price target of $70.

• Baird analyst David Tarantino maintained Chipotle with an Outperform and lowered the price target from $74 to $62.

• Evercore ISI Group analyst David Palmer maintained Chipotle with an Outperform and lowered the price target from $65 to $59.

See Also: Starbucks, Chipotle Witness Slight Dip Premarket After CEO Shakeup Draws Mixed Reactions From Analysts

CMG Price Action: Chipotle shares were up 0.81% at $52.10 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Chipotle.

Posted In: CMG SBUX