Chipotle (CMG) founder and CEO Steve Ells should take his norovirus filled burrito and head home.
The beleaguered burrito giant's top dog should be embarrassed by how he has led the company over the past two years. From not setting the company up structurally for success on mobile to failing to implement best-in-class food safety protocols, Steve Ells has let investors down. In fact, he sacked his long-time friend Monty Moran last year, blaming him for the E.Coli outbreak. That's sorry leadership, in my books.
- This Chipotle Chart Should Leave Short Sellers Feeling Sick
- Chipotle's Food Scares Could Be Due to Corporate Sabotage, Restaurant Consultancy Hints
And in light of the recent health scare, I believe the board should call an emergency meeting to strongly consider sending Ells packing. Chipotle is at that "make or break" moment where it could either turn itself around finally or fall into a black hole of irrelevancy. For it to survive, Ells needs to be sent packing -- and someone like McDonald's (MCD) CEO Steve Easterbrook brought in to turn things around.
I am no McDonald's fan, broadly speaking. But Easterbrook should be commended on how he has led the "heart attack on a plate" seller back from deep troubles. Easterbrook has got the basics right -- he is out in the restaurants talking to people and he has set an ambitious global growth agenda that may just be pulled off. As a result, McDonald's stock has soared.
Go figure.
What's Smoking HOT On TheStreet
Yours truly talked with Ford's (F) CFO Bob Shanks following the automaker's better-than-expected earnings and the outlook under new CEO Jim Hackett.
Here are my top takeaways:
- Ford's tax rate should stay a nice boost to earnings into year end. Wall Street may still not be properly modeling its profit estimates.
- Pretty amazing how Ford's truck sales are so strong amid the shift to SUVs and crossover SUVs.
- The U.S. economy doesn't seem like it's nearing an serious imminent slowdown -- Ford's truck sales were solid.
- U.S. car sales data is going to get worse in coming months as it comes off peak -- this will likely continue to weigh on the sector's multiples.
- Investors will be surprised by how much General Motors (GM) and Ford will need to invest to support a world of ride-sharing and electric cars.
- Ford will probably announce a fairly robust restructuring plan before the year is out.
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