Name of opportunity: 👀
Chipotle Mexican Grill, Inc
CEO Brian Niccol says goodbye: 👋
Yesterday, Chipotle’s CEO, Brian Niccol, announced that he will be stepping down, sending Chipotle stock into turmoil - it fell by 11.83% and the company’s market value lost approximately US$10 billion. In the announcement, he shared that he would be moving to a new position as CEO of Starbucks - the coffee shop chain’s stock rose 21% in response.
The image below shows Chipotle’s movement over the last week - you can clearly see the moment that Niccol’s announcement sent a shockwave through the stock’s investors. Niccol will leave Chipotle at the end of August.
Brian Niccol helped turn things around at Chipotle after e-coli outbreaks at certain Chipotle restaurants in 2015 sent 22 people to hospital and lowered public trust in the company significantly. The share price fell by 20% that November. Further outbreaks in 2017 did not help, although the company had appointed a new head of food safety in 2016 who initiated new food hygiene measures.
When Niccol joined as CEO in 2018, he helped fix Chipotle’s reputation, and improved its digital offering for customers to buy online or through the app. Since then, the company has consistently performed well.
How hot is this investment opportunity? 🔥🔥🔥
While Chipotle’s recent drop in value doesn’t look so great, analysts think the company should still continue to perform highly. Brian Niccol has said that the company is “in great shape and poised for growth”. So could this be an opportunity to grab Chipotle stock at a lower price?
Analysts think that the price of Chipotle Mexican Grill, Inc. will increase from $51.68 to $65.24 in the next 12 months. If you invested $1000, you might profit $262.46. A potential gain of 26.25%, that would take it back to its price before Niccols’ announcement - and then it would exceed that price.
At the end of July, Chipotle’s quarterly results showed that total revenue increased by 18.2% to $3.0 billion. Last month Chipotle also executed a 50-for-1 stock split, often a good sign that a company’s stock is doing well.
Burritos and bowls: 🌯
Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. The Company’s Chipotle Mexican Grill restaurants serve a relevant menu of burritos, burrito bowls (a burrito without the tortilla), quesadillas, tacos, and salads. The Company has approximately 3,200 restaurants in the United States, Canada, the United Kingdom, France and Germany.
Which neme?: 🔍
‘Top Stocks on X/Twitter’, ‘Food and Drink’, ‘Stocks On The Move’, ‘Biggest Losers Today’
Download Nemo to take a bite of Chipotle stock
