Chipotle CEO Search Signals Openness to Changes
While changes would take time to implement, new leadership could help to improve the brand-intangible asset behind Chipotle's narrow economic moat.
While
There is no change to our $350 fair value estimate or Standard stewardship rating; we will wait for the new CEO appointment before making changes to our longer-term assumptions. Our model continues to assume low- to mid-single-digit comps and a deceleration to mid-single-digit unit growth over the next five years (resulting in high-single-digit revenue growth), with operating margins recovering to the midteens over the same period (but below the high teens posted just a few years ago).
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