There’s a lot of doubt about Chipotle’s turnaround. But Hedgeye Restaurants analyst Howard Penney has seen this story play out before. Penney’s nearly two decades of experience covering consumer products suggests Chipotle will be an even better company after it sorts out its issues.
Every great restaurant company (MCD, SBUX, YUM, DPZ, DNKN, WEN, QSR – Burger King & JACK, to name a few) has run into trouble and has recovered to create significant value for shareholders, Penney says.
“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 says 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.