… Except Chipotle
The report says that “Everyone wants to be Chipotle,” but also adds “even Chipotle.” Most evidence seems to disagree, though. While the fast-casual format might look promising, the craving for Chipotle’s taste in particular seems to be fading.
The aforementioned Goldman Sachs survey, for example, found that the Mexican grill has taken a step back in consumer surveys. While analysts recognized the drop might be a statistical anomaly, they also noted:
“This said, we are not entirely dismissive, as this fall-off in brand score did coincide with a meaningful change in the company’s same-store sales trajectory.”
There are plenty of other reasons not to take the consumer sentiment drop lightly, including recent comments from David Einhorn about the threat of Taco Bell and the stock’s not-so-stellar recent performance.