Tags: brian niccol | chipotle | ceo | taco bell

Brian Niccol, Chipotle's Incoming CEO, Inspires Hope Among Investors

Brian Niccol, Chipotle's Incoming CEO, Inspires Hope Among Investors

A sign marks the location of a Chipotle restaurant on Oct. 25, 2017, in Chicago, Illinois. (Scott Olson/Getty Images)

By    |   Wednesday, 14 February 2018 01:28 PM

Brian Niccol will become Chipotle's new CEO, and the company's shares jumped by about 12 percent overnight after the announcement Tuesday, Investor Place reported, but is it enough to save the company?

The former Taco Bell boss will take over the reins from Chipotle founder and CEO Steve Ells in March, and while he has his work cut out for him, the reshuffling may be what the company needs to recover from a slew of food-safety issues that have plagued it in recent years, USA Today noted.

On Tuesday, Chipotle stock was up $30.27 to $281.60 in after-hours trading suggesting that investors are hopeful about Niccol's new role within the company.

Chipotle fell from market grace following its ongoing issues involving foodborne viruses, but in its most recent quarterly report the company reported a year-over-year revenue increase of 7.3 percent.

The snag is that, according to Investor Place, the bulk of the company's revenue gains were generated from opening new restaurants while same-store sales increased by less than 1 percent.

The company has over $2 billion in assets, no debt and over $500 million in cash and other short-term assets for Niccol to work with.

And the new CEO brings a wealth of experience to the table.

Niccol joined Taco Bell in 2011 and served as chief exec from 2015 and president from 2013 to 2014, according to a media release.

Under his lead, the company underwent a dramatic transformation and successfully launched numerous product initiatives.

Niccol also held leadership roles at Pizza Hut and at Procter and Gamble, where he spent 10 years in various brand management positions.

Niccol hopes to focus on developing Chipotle's "cultural relevance through innovation in menu and digital communications," according to CNBC.

"This will attract customers, return the brand to growth, deliver value for shareholders and create opportunities for employees," he said.

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TheWire
Chipotle announced Tuesday that Brian Niccol will replace Steve Ells as CEO in March, and many wonder whether the former Taco Bell boss will be able to help the fast-casual restaurant chain that has struggled in recent years.
brian niccol, chipotle, ceo, taco bell
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2018-28-14
Wednesday, 14 February 2018 01:28 PM
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