Chipotle pops after naming Taco Bell CEO as new head boss
- Current Taco Bell CEO Brian Niccol will be the new CEO of Chipotle on March 5.
- Shares of Chipotle climbed as much as 10% on the news.
Shares of Chipotle Mexican Grill popped more than 10% in after-hours trading on Tuesday following a report that current Taco Bell CEO Brian Niccol will assume the same role for the embattled Mexican chain starting on March 5.
Chipotle is expected to officially announce the news later on Tuesday, according to a Wall Street Journal report.
Current CEO Steve Ells announced in November 2017 he would leave the chain when a suitable replacement was found.
Niccol has served as CEO of Taco Bell for three years. The fast-food chain is owned by Yum Brands, which also owns Pizza Hut and KFC.
The 43-year-old will have his work cut out for him at Chipotle, which has struggled to raise its stock price after numerous instances of food poisoning at various restaurants throughout the country. Their food-safety issues eventually culminated in every restaurant nationwide closing for a day.
Shares of Chipotle have lost 59% over the past three years.