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Bank Downgrades Chipotle, Complaining It Pays Workers Too Much

posted by takyon on Sunday October 22 2017, @09:22AM   Printer-friendly
from the FIRE-sector-doing-bad-math-again dept.

-- OriginalOwner_ writes:

The Intercept reports:

Bank of America Merrill Lynch downgraded Chipotle and warned investors that the stock will "underperform", complaining that the restaurant chain is paying its workers too much, and that cutting labor costs further will be difficult for the chain.

[...] Chipotle spokesperson Chris Arnold called Bank of America's analysis "flawed and inaccurate", adding that the restaurant chain hasn't cut employee hours but recently increased hours in conjunction with the addition of queso to the menu.

"That analysis is making estimates and conclusions about our management practices over a 12-year time frame from 2006 to 2017", Arnold told The Intercept. "Obviously, the scale of our business and labor wages have changed dramatically over that time frame. Drawing conclusions from 2006 and applying them as a directional change to our business over the past 12 months is simply flawed."

[...] "We continue to pay wages and offer benefits that are competitive and that reflect the priorities of our employees", Arnold said. "And with a commitment to developing and promoting people from within, we are providing significant opportunities for advancement."

The downgrade is a symptom of Wall Street's maniacal obsession with labor costs.

Original Submission

 
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  • (Score: 5, Touché) by Gaaark on Sunday October 22 2017, @03:40PM (1 child)

    by Gaaark (41) on Sunday October 22 2017, @03:40PM (#585969) Journal

    Another problem is rewarding failure:

    Sears executives fail INCREDIBLY well, but get big bonuses for their excellence at being shite.

    So long as you're not a grunt, you get rewarded no matter how badly you SUCK AT YOUR FUCKING JOB!!!

    Should not be allowed: their bonuses should go to covering creditors and what is left is shared equally among all employees.

    Only prostitutes should get well rewarded for sucking.

    --
    --- Please remind me if I haven't been civil to you: I'm channeling MDC. ---Gaaark 2.0 ---
    Starting Score:    1  point
    Moderation   +4  
       Insightful=1, Touché=3, Total=4
    Extra 'Touché' Modifier   0  
    Karma-Bonus Modifier   +1  
    Total Score:   5  

  • (Score: 1, Informative) by Anonymous Coward on Sunday October 22 2017, @10:44PM

    by Anonymous Coward on Sunday October 22 2017, @10:44PM (#586083)

    You can only imagine how many times I say that at my screen in a week's time as I traverse the internet.

    Any instructor|tech book author who doesn't understand the "DEGRADES GRACEFULLY" thing should be taken out and beaten with a stick.

    So, it's not only applicable to C-level jerks.

    -- OriginalOwner_ [soylentnews.org]