“Nacho Old Chipotle” is what Morgan Stanley analysts titled an upbeat report on Chipotle Mexican Grill on Wednesday. Taco about bad timing.
In their report upgrading their rating on Chipotle to overweight, the analysts said the company’s new management was delivering, with easy opportunities and a benign competitive environment making its shares primed for gains. One caveat: If the persistent food-safety issues that kept customers away from the burrito chain in recent years recurred, their could be trouble.
Caveats can come at you fast. On Thursday, local health officials said tests showed that people sickened after eating at an Ohio Chipotle restaurant had been infected by food-borne bacteria. Chipotle announced it will be retraining its restaurant workers nationwide on food safety starting next week. Its stock fell 4.2%.
New management did deliver, just not exactly what the analysts expected.
Source of this (above) article: https://blogs.wsj.com/moneybeat/2018/08/16/pepper-shot/?mod=WSJBlog