This is the wildest C-suite move I’ve ever seen.

Starbucks (SBUX) poached Chipotle’s (CMG) all-star CEO, Brian Niccol.

While this may seem like flattery, I believe Brian Niccol is worth every dollar.

Brian is a great fit for Starbucks. Aside from both companies specializing in mass customization, Brian knows throughput, which is a major challenge at Starbucks.

When CMG encountered a throughput problem in Q2-Q3 2023, Brian invested in automation. This investment decreased the time needed to cook chicken thoroughly and peel avocados for guac. Clearing these bottlenecks eliminated costly service interruptions, allowing Chipotle to turn over more customers and improve the customer experience by reducing wait times.

Starbucks, however, faces challenges beyond throughput. Its brand image has taken a hit, price points are under pressure, and the China business remains an open question. While I’m not sure if Brian Niccol – or anyone – can unilaterally fix everything, I wouldn’t underestimate him.

As for the stocks…

Barring abysmal fundamental performance (earnings), this hire gives SBUX a multi-quarter grace period. Brian Niccol has influence, and the Street will give him time to enact a plan. The turnaround here will be more difficult than at Chipotle. That said, it’s hard for me to make a bold stock price prediction after a +20% gap higher.

While Brian left CMG in a position of strength, it is now without its North Star. Down more than 10%, this looks like an opportunity. Unfortunately, as long as CEO uncertainty remains, it doesn’t seem wise to jump in with both feet. The stock may need to revisit the mid-$40s before finding its footing.