Chipotle's next CEO is going to inherit a ton of problems (CMG)

pulse

February 1, 2018 9:48 PM

Few analysts on Wall Street see much of an upside for the battered "fast-casual" food chain unless they make some drastic changes.

The company is searching for a new CEO, which could help, but some analysts remain skeptical of the fast-casual chain.

Chipotle's next CEO is going to inherit a ton of problems.

The company said in November that it is searching for a new CEO to replace Steve Ells, the founder of the chain, who will step down once the company finds a suitable person to fill the role. Ells will still remain at the company as an executive chairman.

But UBS analyst Dennis Geiger said that he sees no salvation in sight for the fast food company, even with a new CEO. He said that perceptions of the brand remain low, and will not likely change soon, while competition will remain high and unit growth will stay low as the chain has to contend with sluggish same-store sales and depressed margins.