Sweetgreen adds two former Chipotle execs to leadership team

Sweetgreen (SG) is hiring two former Chipotle (CMG) executives. Michael Kotick has been hired as the VP & Head of Marketing for Sweetgreen, while Chad Brauze has been hired as Head of Culinary. Sweetgreen hopes to emulate Chipotle in its efforts to expand its stores nationwide. Yahoo Finance Live breaks down the story.

Video Transcript

ALEXANDRA CANAL: We got a lot of stories today. I want to talk with Sweetgreen, one of my favorite go-to lunch spots here in the city. Interestingly, they are hiring two former Chipotle executives.

And, guys, it seems like when we talk about these fast casual restaurants, they're all trying to emulate Chipotle. And as you can see there, we have two executives leading the marketing side of the business, as well as the culinary side.

Sweetgreen is really trying to expand their footprint beyond these major cities on the East Coast and the West Coast, go more midland. And they want to establish a really strong brand identity and have new and unique options. But, you know, I think about the Chipotle share price, how much higher that is compared to a Sweetgreen or even all that which we were talking about.

DIANE KING HALL: Sweetgreen has done well in terms of its share price year to date. I mean, it was actually up double digits. Or is that the year-to-date chart? No, that's a five-day chart we're looking at right now.

ALEXANDRA CANAL: But still, look at it.

DIANE KING HALL: So five-day chart, it's up about 5%. But on a year to date--

JOSH SCHAFER: They're different businesses.

ALEXANDRA CANAL: I know, but still--

DIANE KING HALL: But clearly, this is a push for middle America. We've talked about this with, say, like Cava. I'm originally from the Midwest, although I've lived here a long time. I won't say how long. [LAUGHS] You know, and it'll be interesting to see if this works. You can see why Chipotle works. It has two drive-thru lanes. Will Sweetgreen-- Sweetgreen can't do that here.

JOSH SCHAFER: To me, it's the menu innovation that they're talking about, right, in that report because that's what Sweetgreen-- to me, even being in New York City, where you see a lot more Sweetgreens and you, in theory, see more Sweetgreen advertising, they haven't come across to me with the new Adobo Chicken that's at Sweetgreen, right? Your friends aren't talking about things like that that they talk about at Chipotle, the new brisket, the smoked brisket, right? Chipotle has been--

ALEXANDRA CANAL: So you're saying have more innovative meats.

JOSH SCHAFER: Tying the marketing with the new menu items is something Chipotle has been very successful at, a lot of fast food chains are very successful at. And I don't think Sweetgreen has quite achieved that yet.

DIANE KING HALL: No, how much innovation can you do with a salad? [LAUGHS]

JOSH SCHAFER: They can probably make it less healthy, right?

ALEXANDRA CANAL: You can make very innovative salads. I'm the go-to salad maker in our family. And you can get creative with it, but, you know, you need to present people with those options, as you were saying.

JOSH SCHAFER: Seasonality push. What's your pumpkin pie, right?

ALEXANDRA CANAL: They do do that.

JOSH SCHAFER: Right. And they have, like, a fall harvest bowl and stuff that they'll come out with. But how do you put them in front of the consumer and really make it feel new and different? I don't think Sweetgreen has quite gotten there yet in terms of marketing in the way that a Chipotle does. And so that's what I think is interesting when they bring in some of those executives.

ALEXANDRA CANAL: I think Sweetgreen should just play to its strengths, which is the organic farm-to-table, the healthy kind of vibe because even at Chipotle, sure, you can make it healthy, but you also don't know where they're getting their ingredients. If I'm going the healthy option, I'm picking Sweetgreen.

JOSH SCHAFER: Who knows? Sweetgreens can--

ALEXANDRA CANAL: Yes, it is. It's on a little-- it's on a little board. It says the farm that they bring it-- that they get it from. So you can see where it's from. And honestly, if I'm going healthy, I'm picking Sweetgreen over Chipotle.

DIANE KING HALL: Did you do Sweetgreen for lunch today?

ALEXANDRA CANAL: I didn't do Sweetgreen for lunch today, but I do it most of the time if I have to go out there and get something.

DIANE KING HALL: OK.