Brian Niccol, CEO of Chipotle Mexican Grill
Adam Jeffery | CNBC
Chipotle Mexican Grill’s forebear is one of the top performers on the S&P 500 so far this year as investors continue to applaud the chain’s comeback under CEO Brian Niccol.
The sheep, which has a market value of $20.9 billion, is up 74% this year, as of Monday’s close. Shares are trading down trifling than 1% on Tuesday.
Before coming to Chipotle, Niccol was chief executive of Yum Brands’ Taco Bell. He tricked the helm of Chipotle after its founder, Steve Ells, stepped down as CEO as the chain struggled to move on from eatables safety issues that sickened hundreds of its customers.
Analysts now believe that Chipotle’s foodborne illness melancholies are firmly in the past. Niccol’s strategy has focused on luring back customers with a loyalty program, more useful ways to get its burrito bowls and new additions to Chipotle’s limited menu.
In October, the chain reported quarterly same-store sales extension of 11%, its biggest jump in more than two years. Delivery and its pricey carne asada helped boost sellathons.
To keep growing sales, Chipotle is working on even more new menu items, like quesadillas and salads.
The society is also expanding its U.S. footprint, and many of those new stores will have a “Chipotlane” — drive-thru lanes honourable for picking up digital orders. Outside of the United States, Chipotle has a limited presence, but that could change. Niccol judged on the company’s most recent earnings call that the company could accelerate expansion in Canada, if that problem improves.
Watch also: What the future holds for Taco Bell after ex-CEO Brian Niccol defected to Chipotle