There’s still a lot of investor doubt surrounding a successful turnaround at Chipotle (CMG).
We get it—we understand the doubters.
In fact, our veteran Restaurants analyst Howard Penney successfully authored the bear case on the stock, before pivoting from being one of the most outspoken bears on the stock, to one of its biggest bulls.
Penney has seen this story play out before. His nearly two decades of experience covering consumer products suggests Chipotle will be an even better company after it sorts out its issues.
According to Penney, every great restaurant company (MCD, SBUX, YUM, DPZ, DNKN, WEN, QSR - Burger King & JACK, to name a few) has run into trouble at some point. But they eventually made the necessary adjustments, recovered, and created significant value for shareholders willing to be patient through the storm.
“I challenge everyone and e-mail us if you can come up with a brand that is 1,000 units or more that has gone through what Chipotle has gone through and not gone on to become a better company,” Penney explains in the clip above.
Thanks to new leadership in CEO Brian Niccol, a pivot in company strategy, and a laser focus on the company’s food and frontline, Penney says all of this will lead to “the greatest turnaround the industry has ever seen.”
Watch the full clip above for more.