Chipotle Longs Are In Denial
Chipotle Mexican Grill (CMG) is up about 15% today as the market cheers the hiring of a new CEO from Taco Bell. While CEO Brian Niccol was highly successful at Taco Bell, he isn't a good fit for the Chipotle culture. A shift from "food with integrity" will be disastrous to the stock in the short run. Don't forget that JCPenny (JCP) originally cheered the hiring of Ron Johnson and that about killed the retailer as he attempted to change the corporate culture.
This take from Jim Cramer on CNBC is 100% accurate. Shareholders need to be careful you wish for.
Jim Cramer: Brian Niccol as new Chipotle CEO is a staggering pick from CNBC.
The stock might run to $300 or even $350, but the likely changes by this new CEO will disrupt operations and chase away customers. Do you really want to pay a 30 P/E multiple for this stock?
Disclosure: No position. Please see the disclaimer page for more details.
This take from Jim Cramer on CNBC is 100% accurate. Shareholders need to be careful you wish for.
Jim Cramer: Brian Niccol as new Chipotle CEO is a staggering pick from CNBC.
The stock might run to $300 or even $350, but the likely changes by this new CEO will disrupt operations and chase away customers. Do you really want to pay a 30 P/E multiple for this stock?
Disclosure: No position. Please see the disclaimer page for more details.
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