There are many reasons to own stocks, and the CEO is one of them. The right CEO can be a determining factor in a company’s success, shaping operations, driving growth and delivering meaningful returns to shareholders. Strong leadership often signals not only sustainable performance, but also the potential for transformation.
Brian Niccol and Laura Alber are prime examples of how leadership vision can create lasting value. Their track record is Chipotle Mexican Grill New York Stock Exchange: CMG And Williams-Sonoma New York Stock Exchange: WSM highlight why investing in companies led by outstanding leaders is a strategy for long-term success. These two CEOs have demonstrated their ability to innovate, expand and improve profitability, making the companies they lead highly attractive for investment.
Brian Niccol: Moves to Starbucks after Chipotle Doubles Revenue
Brian Niccol took over as CEO of Chipotle Mexican Grill in 2018 and doubled the business during his tenure. With prospects for domestic and international expansion, the company plans to double its operations again over the next five to ten years. In the long term, it may even double for the third time. Niccol also grew profits, increasing earnings nearly 7x, with scale and efficiency driving the results.
Nikkola’s leadership style emphasizes brand strength, quality and responsiveness. At Chipotle, he leveraged digital innovations such as the introduction of Chipotlanes, which are drive-thru-only apps designed to improve efficiency during peak hours. These channels improved customer flow, reduced service staff workload, and increased profits by reducing costs. In addition, Niccol advocated the adoption of operational technologies, such as specialized kitchen tools, to save time and increase productivity.
Starbucks today
(As of 6:04 p.m. ET)
- 52 week range
- $71.55
▼
$103.32
- Dividend yield
- 2.42%
- P/E ratio
- 30.42
- Target price
- $103.77
Now at Starbucks NASDAQ: SBUXA much larger company than Chipotle, Niccol is expected to drive similar transformational changes. Starbucks is looking to return to its coffee shop roots by creating more convenient places for customers to meet and enjoy their favorite beers. Niccol plans to look into staffing and other ways to improve the quality of work, especially during peak hours.
Niccol’s proven ability to improve financial performance is evident in Chipotle’s success. His initiatives improved cash flow and profitability by investing in growth, maintaining a strong balance sheet and executing additional share repurchases, which increased value for investors.
Starbucks is in good shape and is expected to improve its financial health over the years under Niccol’s leadership.
Laura Alber: Increasing Shareholder Value for Williams-Sonoma
Williams-Sonoma today
Williams-Sonoma
(As of 11/26/2024 ET)
- 52 week range
- $90.87
▼
$181.42
- Dividend yield
- 1.31%
- P/E ratio
- 20.59
- Target price
- US$154.41
Since taking control of Williams-Sonoma in 2010, Laura Alber has doubled the business, which includes brands such as Williams Sonoma, Williams Sonoma Home, Pottery Barn, Pottery Barn Kids, PBteen, West Elm, Mark and Graham and Rejuvenation.
Alber’s efforts include increasing brand awareness and loyalty, as well as expanding into new markets and categories. Pottery Barn Kids is now a critical business segment driving 2024 results. The latest initiatives boosted system-wide margins despite contraction in core business due to post-pandemic market normalization and macroeconomic headwinds. The company is expected to return to growth soon and maintain its growth trajectory over the long term.
The margin expansion underscores why you should buy shares of any company run by Laura Alber. Williams-Sonoma’s margins are approaching the high end of their long-term 2024 target, with no signs of declining anytime soon. The margin provides sustainable cash flow, which she and the board use to support growth investments, a healthy balance sheet and capital returns, including dividends and buybacks. Share buybacks reduced the rate by 2% year-over-year in the third quarter and by 1.2% year-to-date, and are expected to continue at a strong pace into 2025.
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