After they got rid of e.coli and cocaine as condiment choices, I stopped going.
CMG
- Thread starter vanzandt
- Start date
Coca Coli was the best.
In the long-run I think that it's worth $20B, 1/5th of Mcdonalds $100B. That's almost double what it's worth now.
I think a bounce is incoming before the new year too.
I think a bounce is incoming before the new year too.
Hmmmmm....(?)
Interesting.
Hot off the wires:
Chipotle builds team to defend against activist investor Ackman -sources
Svea Herbst-Bayliss and Lisa Baertlein
3 Hours AgoReuters
-sources@
BOSTON/LOS ANGELES, Oct 27 (Reuters) - Chipotle Mexican Grill Inc has turned to high-profile investment bankers and lawyers to help defend against activist investor William Ackman, according to two people familiar with the matter on Thursday.
Investment banks Goldman Sachs Group Inc and Morgan Stanley, as well as law firm Wachtell, Lipton, Rosen & Katz LLP, are now working for the U.S. restaurant chain, the people said. Chipotle has also hired crisis public relations firm Joele Frank, they added.
Neither Ackman nor his New York-based hedge fund, Pershing Square Capital Management LP, have publicly made any demands of Chipotle after becoming its second-largest shareholder last month.
Billionaire Ackman is known for buying stakes in publicly traded companies and trying to force changes ranging from removing board members to selling off large parts of the company.
The sources asked not to be identified because the assignments are not public. Wachtell and Chipotle did not return calls seeking comment, Morgan Stanley, Goldman Sachs and Joele Frank declined to comment on Thursday.
In early September, Pershing Square said in a regulatory filing that it has a 9.9 percent stake in Chipotle, becoming its biggest shareholder after Fidelity Investments.
Chipotle is struggling to revive sales after a string of food borne illness outbreaks last year sent its shares tumbling. As a result, Chipotle on Tuesday posted another dismal quarterly earnings performance.
Executives have vowed to make the chain leaner and more efficient. They have laid out plans for long-overdue investments in digital ordering and payments, deeper cost cuts, and said they would pursue strategic alternatives for its 15-unit ShopHouse Southeast Asian Kitchen chain.
Chipotle in September said it welcomed Pershing Square's investment and appreciated its confidence in the company.
Since then, Pershing Square and Chipotle have met at least once and have had telephone conversations, two people familiar with the matter said. They declined to discuss what the two sides have said to each other.
People familiar with Ackman's thinking have suggested that he believes Chipotle's long-serving board is due for an overhaul, and that it needs to beef up its marketing, cost controls and information technology.
Ackman has been relatively quiet about his latest investment and the company's share price has not moved in his favor. After the initial uptick following news of his stake, shares have fallen nearly 10 percent.
Activist-oriented hedge funds such as Pershing Square have been hit hard by redemptions, with investors pulling roughly 5 percent in capital this year alone, cutting assets under management to about $116 billion, divided among some 78 activist funds, data from Hedge Fund Research shows.
Interesting.
Hot off the wires:
Chipotle builds team to defend against activist investor Ackman -sources
Svea Herbst-Bayliss and Lisa Baertlein
3 Hours AgoReuters
-sources@
BOSTON/LOS ANGELES, Oct 27 (Reuters) - Chipotle Mexican Grill Inc has turned to high-profile investment bankers and lawyers to help defend against activist investor William Ackman, according to two people familiar with the matter on Thursday.
Investment banks Goldman Sachs Group Inc and Morgan Stanley, as well as law firm Wachtell, Lipton, Rosen & Katz LLP, are now working for the U.S. restaurant chain, the people said. Chipotle has also hired crisis public relations firm Joele Frank, they added.
Neither Ackman nor his New York-based hedge fund, Pershing Square Capital Management LP, have publicly made any demands of Chipotle after becoming its second-largest shareholder last month.
Billionaire Ackman is known for buying stakes in publicly traded companies and trying to force changes ranging from removing board members to selling off large parts of the company.
The sources asked not to be identified because the assignments are not public. Wachtell and Chipotle did not return calls seeking comment, Morgan Stanley, Goldman Sachs and Joele Frank declined to comment on Thursday.
In early September, Pershing Square said in a regulatory filing that it has a 9.9 percent stake in Chipotle, becoming its biggest shareholder after Fidelity Investments.
Chipotle is struggling to revive sales after a string of food borne illness outbreaks last year sent its shares tumbling. As a result, Chipotle on Tuesday posted another dismal quarterly earnings performance.
Executives have vowed to make the chain leaner and more efficient. They have laid out plans for long-overdue investments in digital ordering and payments, deeper cost cuts, and said they would pursue strategic alternatives for its 15-unit ShopHouse Southeast Asian Kitchen chain.
Chipotle in September said it welcomed Pershing Square's investment and appreciated its confidence in the company.
Since then, Pershing Square and Chipotle have met at least once and have had telephone conversations, two people familiar with the matter said. They declined to discuss what the two sides have said to each other.
People familiar with Ackman's thinking have suggested that he believes Chipotle's long-serving board is due for an overhaul, and that it needs to beef up its marketing, cost controls and information technology.
Ackman has been relatively quiet about his latest investment and the company's share price has not moved in his favor. After the initial uptick following news of his stake, shares have fallen nearly 10 percent.
Activist-oriented hedge funds such as Pershing Square have been hit hard by redemptions, with investors pulling roughly 5 percent in capital this year alone, cutting assets under management to about $116 billion, divided among some 78 activist funds, data from Hedge Fund Research shows.
That reminds me, I'm hungry for some Chipotle right now.
Towards the end of the Chipotle run, when it was getting like 10% SSS increases on a mature concept, I think a lot of that was a social fad. Everybody was going to Chipotle because everybody was going to Chipotle. A neighborhood would get a new Chipotle and the late adopters - the biggest group - would all rush out to check it out. Part of Chipotle's success was taking low-status food - burritos and tacos - and making it high-end by emphasizing the ingredients and the make it yourself aspect. There was a bit of a novelty factor, possibly. But after the fad broke, the restaurant returned to its normal level. The investors are anchored to the old high which was not realistic over the long term. Chpotle is now just another fast food place.
Last edited:
Chipotle founder Ells takes over as sole CEO at burrito chain
10 Mins Ago
Reuters
(Adds analyst comment, updates shares)
Dec 12 (Reuters) - Chipotle Mexican Grill Inc said founder and co-Chief Executive Steve Ells would become sole CEO, a position he held from 1993 until 2009, after Monty Moran stepped down following a series of food safety lapses that hit its sales and reputation.
The burrito chain, whose shares were up 1.5 percent in afternoon trade at $375.59, has been struggling to recover from outbreaks of E. coli, salmonella and norovirus linked to its restaurants last year.
"Given the ongoing challenges facing the company, the board felt strongly that it was best for Steve to resume leadership of the company going forward," Neil Flanzraich, the company's lead director, said in a statement on Monday.
Moran, 50, will retire in 2017, the company said without providing details. Until then, he will be an adviser.
"This move is not unanticipated, as Mr. Moran was recently absent from at least one recent conference," Instinet LLC analyst Mark Kalinowski said.
Given Chipotle's mostly self-inflicted and significant challenges of the last 12-15 months, it would have been unusual to see no changes in top management, Kalinowski said.
Moran was Chipotle's chief operating officer and was responsible for its restaurant operations. He was promoted to share the top job with Ells in 2009.
Chipotle said 51-year-old Ells, who remains chairman, would pursue a staff incentive program tied to customer experience.
The company said at an investor conference last week that a food safety program it had put in place in the aftermath of the outbreaks had led to a drop in the quality of customer service.
To lure back customers, Chipotle has issued coupons for free and discounted meals, introduced new menu items, spent on new technology and laid out plans to improve service.
Sales have remained weak, though, and the company's chief financial officer, Jack Hartung, told investors last week that he was "nervous" about meeting full-year targets.
Chipotle's same-restaurant sales have fallen for four straight quarters, dropping 21.9 percent in the latest quarter.
The company said last week it would announce a new slate of board members soon.
Billionaire investor William Ackman, who took a nearly 10 percent stake in the company three months ago, wants several board seats with the aim of improving up food safety and marketing, sources have told Reuters.
Chipotle's shares, which traded as high as $758.61 last August, have lost about 23 percent of their value this year.
10 Mins Ago
Reuters
(Adds analyst comment, updates shares)
Dec 12 (Reuters) - Chipotle Mexican Grill Inc said founder and co-Chief Executive Steve Ells would become sole CEO, a position he held from 1993 until 2009, after Monty Moran stepped down following a series of food safety lapses that hit its sales and reputation.
The burrito chain, whose shares were up 1.5 percent in afternoon trade at $375.59, has been struggling to recover from outbreaks of E. coli, salmonella and norovirus linked to its restaurants last year.
"Given the ongoing challenges facing the company, the board felt strongly that it was best for Steve to resume leadership of the company going forward," Neil Flanzraich, the company's lead director, said in a statement on Monday.
Moran, 50, will retire in 2017, the company said without providing details. Until then, he will be an adviser.
"This move is not unanticipated, as Mr. Moran was recently absent from at least one recent conference," Instinet LLC analyst Mark Kalinowski said.
Given Chipotle's mostly self-inflicted and significant challenges of the last 12-15 months, it would have been unusual to see no changes in top management, Kalinowski said.
Moran was Chipotle's chief operating officer and was responsible for its restaurant operations. He was promoted to share the top job with Ells in 2009.
Chipotle said 51-year-old Ells, who remains chairman, would pursue a staff incentive program tied to customer experience.
The company said at an investor conference last week that a food safety program it had put in place in the aftermath of the outbreaks had led to a drop in the quality of customer service.
To lure back customers, Chipotle has issued coupons for free and discounted meals, introduced new menu items, spent on new technology and laid out plans to improve service.
Sales have remained weak, though, and the company's chief financial officer, Jack Hartung, told investors last week that he was "nervous" about meeting full-year targets.
Chipotle's same-restaurant sales have fallen for four straight quarters, dropping 21.9 percent in the latest quarter.
The company said last week it would announce a new slate of board members soon.
Billionaire investor William Ackman, who took a nearly 10 percent stake in the company three months ago, wants several board seats with the aim of improving up food safety and marketing, sources have told Reuters.
Chipotle's shares, which traded as high as $758.61 last August, have lost about 23 percent of their value this year.