- Credit Suisse (SIX:CSGN) weighs in on the huge hiring by Chipotle (CMG -0.6%) of ex-Taco Bell CEO Brian Niccol.
- "We believe Niccol’s primary focus will be repairing CMG’s image, particularly with younger consumers, and attempting to restore historical sales volumes (currently ~$1.9mm sales/store vs. ~$2.5mm at 2015 peaks)," writes analyst Jason West.
- "The turnaround effort is likely to involve brand rebuilding, innovation, operational improvements, digital upgrades, and potential day part expansion (e.g., breakfast)," he adds.
- Due to the high valuation on Chipotle and challenges seen for management, CS keeps a Neutral rating on Chipotle, although the firm's price target of $275 reps 9.5% upside potential for shares.
- Previously: Chipotle pops after nabbing Taco Bell CEO (Feb. 13)
- Previously: High praise for Chipotle after CEO hiring (Feb. 14)
- Now read: RCI Hospitality Holdings, Inc. 2017 Q4 - Results - Earnings Call Slides
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