Have Investors Lost Their Appetite for Chipotle Stock?
Given Chipotle's (NYSE: CMG) recent stock performance, one has to wonder if it's still reeling from the sudden departure of former CEO Brian Niccol last summer. Eight months after Scott Boatwright became the company's new CEO, the stock is now down over 25% from its high.Despite the uncertainty such a transition brings, it's not necessarily clear why the restaurant stock is suffering. Is it down because of temporary factors, or do investors need to start taking a more negative view of the company? Let's take a closer look.At first glance, the CEO change looked like something that might have minimal impact. Boatwright had been the chief operating officer since 2017. Since he presumably played a role in the changes made by Niccol, that fact alone makes any significant changes to the company's successful business strategy less likely.Continue reading
Given Chipotle's (NYSE: CMG) recent stock performance, one has to wonder if it's still reeling from the sudden departure of former CEO Brian Niccol last summer. Eight months after Scott Boatwright became the company's new CEO, the stock is now down over 25% from its high.
Despite the uncertainty such a transition brings, it's not necessarily clear why the restaurant stock is suffering. Is it down because of temporary factors, or do investors need to start taking a more negative view of the company? Let's take a closer look.
At first glance, the CEO change looked like something that might have minimal impact. Boatwright had been the chief operating officer since 2017. Since he presumably played a role in the changes made by Niccol, that fact alone makes any significant changes to the company's successful business strategy less likely.
