The changes, which also include more advertising, would shift the restaurant chain away from the “fast casual” vision that has long been its trademark, toward a fast-food-style experience more commonly associated with Burger King (NYSE:BKW), McDonalds’ (NYSE:MCD), Wendy’s (NASDAQ:WEN) or Yum‘s (NYSE:YUM) Taco Bell, Bloomberg noted.
After missing Wall Street estimates for two consecutive quarters, and seeing its shares plunge with each miss, the restaurant chain is looking for ways to boost sales growth.
Earlier this month, activist investor and hedge fund manager David Einhorn warned that Chipotle was overvalued. However, some analysts warned that changing the chain’s operating identity could ultimately backfire, driving away long-time customers.
Chipotle officials denied that the company was abandoning its long-term strategy and suggested that the proposals were just tweaks.
Shares of Chipotle moved up more than 1% in Thursday afternoon trading.