For the last two days, I have been listening to the CEO of Chipotle, Steve Ells, talk about the recovery plan centered around adding Queso to their menu. At first, I thought it was a comedy bit. Can the CEO of Chipotle really think that adding Queso to their menu will turn the company around?
Chipotle stock (CMG) has dropped from a 52 week high of $499 to around $275 (14% drop today). Today’s trade seems to show that investors are not convinced the Queso revolution is going to turn a stock around that has been ravaged by food safety concerns and the destruction of their reputation as a healthy choice. The food is antibiotic free, but the food safety issue may mean you will need to take antibiotics.
Before looking at today’s market, I wondered if this could work for Ford? Just add Queso to a Fusion, or have it available in their showrooms. Perhaps the move is free Queso for people having to spend time in the service department for their recall? In a similar move will the new CEO at GE be adding a Queso maker appliance to the venerable company’s offering. Well a 14% drop in CMG says no, but I am sure the other CEOs will we watching this strategy to see if Queso can boost their balance sheets.
