Chipotle Mexican Grill (CMG) shares are falling Tuesday morning after news that CEO Brian Niccol will take over as CEO and chairman of Starbucks (SBUX) in September. Starbucks CEO Laxman Narasimhan has resigned in the surprise executive shakeup.

Nick Setyan, managing director of Wedbush Securities, and Danilo Gargiulo, senior analyst at AB Bernstein, join Catalysts to discuss the direction of the Chipotle brand, especially as key executives like CFO Jack Hartung have chosen to stay on board rather than retire in March 2025.

“Think about the importance of the ‘Chipotlanes’ (drive-thru) that appeal to the consumer who values ​​convenience more. Well, that type of consumer is now much more familiar with the brand, and we’re seeing Chipotle now work in small towns and college towns, areas where previously you never thought Chipotle could work,” Gargiulo explains. “And so right now we’re talking about a potentially standardized approach that Chipotle needs to roll out in more areas and increase the number of stores…”

Setyan believes Chipotle is “in a very good place” and “in very good hands” with Hartung and COO Scott Boatwright, who will serve as interim CEO.

Click here to watch the full episode of Catalysts for more expert insights and information on current market events.

This article was written by Luke Carberry Mogan.