So Chipotle is now the inverse Jack in the Box (ticker: JACK)? Jack in the Box owns a chain of disgusting hamburger shops and pivoted to the Qdoba brand of slop, after recognizing Chipotle’s immense success serving quality Mexican fare. Lo and behold, times have changed and Chipotle tacos are now synonymous with debilitating food poisoning.
Shares of CMG are higher by $7 or 1.5% on this news.
This is more of an indictment of how poorly the Chipotle brand is struggling to regain its footing than a pivot into a market that is seemingly attractive to restaurateurs. It’s an act of weakness and the stock should be sold.
If CMG wants to play this game right, they should bid $55 for SHAK and help fuel growth under that pristine brand, instead of trying to flip burgers themselves. They’ll likely poison people in their hamburger shops too, since they still haven’t figured out what the culprit was that has caused so many cases of food poisoning.
UPDATE: “We have two non-Chipotle growth seeds open now ? ShopHouse and Pizzeria Locale ? and have noted before that the Chipotle model could be applied to a wide variety of foods,” a spokesman from Chipotle told CNBC.
UPDATE: They have trademarked the name ‘BetterBurger.’
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There are worse slime peddlers out there. ex: Bojangles Inc(NASDAQ:BOJA) – I visited their website and almost threw up.
I always did like their sweet tea.
Having said that, all Bojangles (I think 6 of them) closed in Orlando area about 8 months ago.
ironic the spawn of MCD wants to birth burgers. i passed by a local CMG today and it was LOL because they were power washing the OUTSIDE. haha it ain’t the exterior
I gotta think CMG is just arrogant.
On the flip side, if they can fool that many people after an outbreak, keep the stock high and open a burger chain based on the same food model.. more power to them.
I’ll just steer clear of anything they own.
Thanks for the update. SHAK was great FYI. Glad I own a piece. Hoping they open some stores out on the Left coast (besides Vegas)
It is mind-bending that some of these burger restaurants are constantly growing revenues. Are there really people who eat burgers 3-4 times a week? Something like a SHAK burger should be a once a month (maybe) treat. It is a death sentence to eat this crap. SHAKs are also relatively expensive, so its not like homeless people are eating there. I remain confused.
Why in the wold would they buy SHAK. So many other choices available… at least in the west coast there are Smash Burger, Burger Lounge, etc.
Yup. SHAK is going to have a rude awakening when they come to SoCal. INNOUT, Habit, and Smash are all near me.
In N Out is great, go every time I am out west. I did try and like HABT as well but not as much of course. Visited some Smash out here on the east and meh.
SHAK does the organic thing I think, which fits with CMG market approach. Not sure how many others do.
SHAK, HABT In and Out, whomever. The point is to buy another brand and avoid doing it in house.
Your suggested plan B would make me happy as I am long SHAK from low 30s.
My theory is that the toxins came from the rust falling of the nose rings of the cooks and servers.
This oxidation is what gave the color to those rubbery things they called sofritas.
they just jumped the shark.
Two words: “e.coli”. Or is that one word? Whatever.
Anticipating their next move I have trademarked the name BarfBurger.
Oh boy.
Corp Exec #1: Listen ladies and gents, our guests are now demanding burritos without the norovirus which is impacting our bottom line big time.
Corp Exec #2: Here’s a great idea. We take all that virus-addled taco beef and make into burgers. We can throw a bunch of greasy bacon, jalapenos, cheese, and Fritos on it. Sure the customer will get sick as a dog.. but.. they never will suspect its the tainted meat. It’s a win-win.
Corp Exec #3: When do we announcer a stock buyback?