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Morgan Stanley Downgraded $CMG Today, Cites Company Struggling to Win Back Customers

Has anyone gone back to Chipotle since the ecoli outbreak? I haven’t gone back, due to the specific concern that the company never quite figured out the cause or source of the outbreak. The sages at Morgan Stanley have downgraded CMG today, based off sentiments like mine. They did a survey of 2,000 customers and 13% said they wouldn’t go back in the foreseeable future.

We are a forgiving species, aren’t we?

“A full sales recovery to prior peak volumes could take years in our view, as evidenced by the fact that, according to our survey, approximately 25% of CMG customers either have stopped going or reduced frequency, even six months after the last reported food safety incident,” Morgan Stanley wrote in an analyst note.

Predictably, the stock is Yellen soft today.

cmg

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10 comments

  1. og

    Our company still gets it all the time.

    Pretty sure their food is safer now than it has ever been.

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  2. roundwego

    Restraunts are dying. 99cent whoppers will be back with a vengence. I am thinking of starting a recession burger stand concept based on 99cent bugers and coffee.

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  3. roundwego

    Wonder when chease cake factory blows up.

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  4. speedius

    I went on the night they shut down Pacific NW locations. Some workers were loitering outside, and said they were having “supply issues”. Indeud.

    I returned recently and was greeted by armed security at the door b/c the nearest location is overrun with vagrants and ne’er-do-wells. So yeah, probably won’t be returning for a while, but not because of food safety.

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  5. mx2101

    I stopped going to CMG prior to the event because I concluded the food was not good for me. Anecdotally I’ve noticed the buzz in that space seems to be at Cava Grill now

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  6. t.c.

    Fly, Coup in Turkey.

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  7. narwhal

    The company serves 750,000 customers per DAY! What were there, 55 cases of food poisoning traced back to them? You are much more likely to contract a foodborne illness wherever you go in order to avoid Chipotle, and especially in your own home. There are 48 million cases per year in the US.

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