Sticking with top-notch leadership is one of the tenets of The IBD Methodology. And Chipotle Mexican Grill's superstar CEO in the S&P 500 shows why.
Had you invested $10,000 in Chipotle on March 5, 2018, when Brian Niccol took over as CEO, you'd have $80,842 now, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. That's a gain of 708%, which blows away the S&P 500's 99% gain in that time.
"Brian Niccol just worked magic at Chipotle," said Nancy Tengler, CEO and CIO of Laffer Tengler Investments. Tengler owns shares of both Chipotle and Starbucks for clients. Niccol announced Tuesday his decision to move from Chipotle to Starbucks as CEO.
Niccol Topped All Expectations At Chipotle
It's hard to remember now, but Niccol turned around a mess at Chipotle. Rampant food uncleanliness dogged the company and pushed the stock down to lows when Niccol got there.
Niccol moved fast. He cleaned up food-handling processes to keep food fresh. Chipotle's digital experience was also boosted, allowing customers to order online and employees to focus on serving up online orders fast.
And now, Chipotle's adjusted profit beat or met expectations in each of the past six quarters. And analysts are calling for 21% profit growth this year.
No wonder the value of the company surged more than $62.1 billion with Niccol at the helm.
How Niccol's Chipotle Measures Up
It's hard to overstate Niccol's influence at Chipotle. Under his tenure there, the stock was the 10th best performer in the S&P 500.
What was a top stock since then? Solar power firm Enphase Energy jumped more than 2,921%. That turned a $10,000 investment into $302,115.
The big AI plays are hard to beat, too. Super Micro Computer is up 2,903% since 2018. That makes a $10,000 initial investment worth $300,370. And shares of Nvidia shot up more than 1,858%. That turned a $10,000 investment into $195,832.
But now Starbucks investors hope Niccol can work his magic again. Shares of Starbucks were up only 65% while he was at Chipotle, lagging the S&P 500.
Time for a Venti change?
Chipotle Heats Up With Brian Niccol
Top S&P 500 stocks during Niccol's time as CEO
| Company | Ticker | Chg from 3/5/2018 | Value of $10,000 investment now |
|---|---|---|---|
| Enphase Energy | ENPH | 2,921.2% | $302,115 |
| Super Micro Computer | SMCI | 2,903.7% | $300,370 |
| Nvidia | NVDA | 1,858.3% | $195,832 |
| Advanced Micro Devices | AMD | 1,080.8% | $118,077 |
| Eli Lilly | LLY | 1,065.2% | $116,519 |
| Fair Isaac | FICO | 917.2% | $101,715 |
| Deckers Outdoor | DECK | 888.6% | $98,861 |
| Axon Enterprise | AXON | 865.4% | $96,536 |
| Tesla | TSLA | 831.2% | $93,117 |
| Chipotle Mexican Grill | CMG | 708.4% | $80,842 |
