Credit Suisse weighs in on the huge hiring by Chipotle (CMG -0.6%) of ex-Taco Bell CEO Brian Niccol.
"We believe Niccol’s primary focus will be repairing CMG’s image, particularly with younger consumers, and attempting to restore historical sales volumes (currently ~$1.9mm sales/store vs. ~$2.5mm at 2015 peaks)," writes analyst Jason West.
"The turnaround effort is likely to involve brand rebuilding, innovation, operational improvements, digital upgrades, and potential day part expansion (e.g., breakfast)," he adds.
Due to the high valuation on Chipotle and challenges seen for management, CS keeps a Neutral rating on Chipotle, although the firm's price target of $275 reps 9.5% upside potential for shares.
Previously: Chipotle pops after nabbing Taco Bell CEO (Feb. 13)
Previously: High praise for Chipotle after CEO hiring (Feb. 14)