There's finally a change at the top for Chipotle Mexican Grill (NYSE: CMG), as CEO Stephen Ells will be stepping down after a suitable replacement is found. The founder CEO will then assume the role of executive chairman.
Shares of Chipotle opened sharply higher on Wednesday morning's news, just as a losing team's fan base rallies when a new head coach is tapped. However, a bad team is still a bad team -- and an out-of-favor burrito roller is going to continue to be an out-of-favor burrito roller. If you're holding out for a wizard to magically turn things around the way that Steve Easterbook did at former Chipotle parent McDonald's (NYSE: MCD), you're being naive about where the chain was when its popularity and stock peaked two years ago, where it is now, and the realistic potential of where it will be in the future.
In memoriam of the chorizo burrito, which also is bowing out with CEO Stephen Ells this year. Image source: Chipotle.
Source: Fool.com