Why a Buyout Is the Worst Outcome for Chipotle Investors
Chipotle Mexican Grill (NYSE: CMG) could be a case study in reputational risk. After its Initial Public Offering (IPO) price of $22 per share, shares were on a tear for the greater part of a decade, cresting at approximately $760 per share in 2015. Soon thereafter, the stock came crashing down to earth as the company faced a series of foodborne illnesses, with the first outbreak infecting 55 people in 11 states. Later outbreaks fed into the greater narrative that the company's management was unable to fix the issue.
The company has taken a series of steps to remedy the situation, and parted ways with then co-CEOs Monty Moran and founder Steve Ells. Still, diners are not willing to give Chipotle Mexican Grill the benefit of the doubt. Last quarter, the company produced an anemic 1% comparable-restaurant sales increase, lower than meager expectations of 1.2%.
A recent report from Wall Street analyst firm Bernstein noted Chipotle could be a takeout candidate. For many investors, this is one of the worst possible outcomes.
Source: Fool.com
Chipotle Mexican Grill Inc. Aktie
Die Aktie ist durchaus ein Favorit unsere Community mit 70 Buy-Einschätzungen und 1 Sell-Einschätzungen.
Für Chipotle Mexican Grill Inc. sieht die Community ein Kursziel von 2478 €, was mehr als das Doppelte des aktuellen Kurses von 48.16 € ausmacht.
