Shares of Chipotle Mexican Grill continued to convene on Wednesday, only one day after a association announced it was poaching Taco Bell CEO Brian Niccol to take a layer as a new arch executive.
The burrito chain’s batch peaked some-more than 14 percent, adult some-more than $36 per share, only bashful of a best daily opening given Oct. 18, 2013 when it gained 16.1 percent.
Investors praised Chipotle’s hire, suggesting that a further of Niccols could be a pierce that finally triggers a plain turnaround for a company. Chipotle has struggled of late to win business behind after a series of food-safety issues trampled trade and sales.
While menu cost increases helped Chipotle in a fourth quarter, a association expects trade to continue to loiter during by a center of a year.
As considerable as Chipotle’s gains on Wednesday are, a burrito sequence is not out of a woods. The association is still 17 percent off a Jan. 19 high of $345.88 and lags 42.4 percent off a 52-week high of $499.
In fact, Chipotle stays some-more than 66 percent off a all-time high of $758.49, that it posted on Aug. 5, 2015, only forward of a reports about a initial fibre of food-safety issues.
Investors are anticipating that Niccol can urge Chipotle’s picture and rise digital, smoothness and selling innovations during a restaurants, yet it could be a high ask.
“We trust a appointment of Brian Niccol as CEO is a step in a right instruction for Chipotle, yet we don’t design his employing will outcome in any element change in fundamentals until during slightest 2019,” BTIG researcher Peter Saleh wrote in a investigate note Wednesday.
Guggenheim researcher Matthew Difrisco confirmed his sell rating on a batch Wednesday, essay in a note to analysts that he doesn’t predict Chipotle branch a “180” on a stream plans.
Still, if Niccol’s lane record is any indicator of success, Chipotle could find itself behind during a tip of a container underneath his leadership.