Starbucks CEO Brian Niccol built his reputation at Chipotle Mexican Grill by following one formula: fix operations, rebuild customer traffic, and wait for margins to follow.
That playbook produced a stock return of more than 770% during a six-year tenure that more than doubled annual revenue and saw restaurant-level margins climb from about 19% to nearly 29%, Chipotle's quarterly results showed.
Less than two years into his role at Starbucks (SBUX), the early data suggest the same recovery pattern is emerging across the chain's U.S. locations.
Customer visits are rising, same-store sales have accelerated for three consecutive quarters, and the company recently raised its full-year earnings outlook.
The stock sits near a 52-week high, however, and the market has priced in a completed turnaround that hasn't reached the income statement yet.
#brian #chipotle
That playbook produced a stock return of more than 770% during a six-year tenure that more than doubled annual revenue and saw restaurant-level margins climb from about 19% to nearly 29%, Chipotle's quarterly results showed.
Less than two years into his role at Starbucks (SBUX), the early data suggest the same recovery pattern is emerging across the chain's U.S. locations.
Customer visits are rising, same-store sales have accelerated for three consecutive quarters, and the company recently raised its full-year earnings outlook.
The stock sits near a 52-week high, however, and the market has priced in a completed turnaround that hasn't reached the income statement yet.
#brian #chipotle
4 days ago
