Market Overview

Why Investors Can Be Optimistic Following Chipotle's CMO Resignation

Share:
Why Investors Can Be Optimistic Following Chipotle's CMO Resignation

Chipotle Mexican Grill, Inc. (NYSE: CMG) announced Wednesday the resignation of Mark Crumpacker, the company's chief marketing and strategy officer.

Considering the fast-casual chain’s underwhelming marketing efforts, the resignation isn't surprising.

Last year, Bernstein analyst Sara Senatore argued that if a company wants to drive traffic to its stores through marketing, it needs to show pictures of its food, which Chipotle failed to do so in its campaign during the first quarter of 2017.

“The announcement is consistent with our expectations that new CEO Brian Niccol would begin his role by evaluating the operating structure and leadership of CMG,” sSenatore said in a note out Thursday.

Niccol may breathe some new life into the company’s marketing efforts. At his previous role as the head of Taco Bell, Niccol was known for his innovative and effective marketing campaigns. Senatore argues that the fast-casual industry is one where consistent media presence is critical, and believes under Niccol’s leadership, marketing will be a meaningful driver for the company moving forward.

“New management is the first play in our Turnaround Playbook; new perspectives are helpful in identifying problems and finding solutions,” Senatore said.

The analyst maintains an Outperform rating on Chipotle with a $500 price target.

Shares of Chipotle closed Thursday at $318.91.

Related Links:

Chipotle's Chief Marketing And Strategy Officer Resigns

Stifel Sees Reboot Opportunity For Chipotle, Upgrades From Sell To Hold

Image credit: Chis Potter, Flickr

Latest Ratings for CMG

DateFirmActionFromTo
Sep 2019UpgradesNeutralOutperform
Aug 2019MaintainsOverweight
Aug 2019MaintainsBuy

View More Analyst Ratings for CMG
View the Latest Analyst Ratings

Posted-In: Bernstein Brian Niccol Mark Crumpacker Sara SenatoreAnalyst Color Restaurants Analyst Ratings General Best of Benzinga

 

Related Articles (CMG)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
IINDoughertyAssumes34.0
PNRJefferiesInitiates Coverage On
YYUBSUpgrades
ROKUOppenheimerMaintains155.0
IPHIBank of AmericaMaintains80.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Mike Pompeo: What Investors Need To Know About Trump's Secretary Of State Pick

UBS Revises Outlook On IAC, Parent Company Of Match And Angi Homeservices