by Christopher Freeburn | October 25, 2012 1:37 pm
Chipotle Mexican Grill (NYSE:CMG[1]) restaurants could soon feature drive-through pickup windows and breakfast menus[2].
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[3]), McDonalds’ (NYSE:MCD[4]), Wendy’s (NASDAQ:WEN[5]) or Yum‘s (NYSE:YUM[6]) Taco Bell, Bloomberg noted.
After missing Wall Street estimates for two consecutive quarters, and seeing its shares plunge with each miss[7], 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[8]. 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.
Source URL: https://investorplace.com/2012/10/chipotle-considers-big-changes-to-its-brand/
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