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.
(Score: 0) by Anonymous Coward on Sunday October 22 2017, @07:05PM
Well BoA needed to hire John Kerry to help them with this chain of events. What else did you expect?
Moynihan is scared
Hardly. At that level in the bank they probably do not care. Having worked at the bank for awhile now I can say they are rolling around in trillions and screw over anyone they can to make more.
Moynihan and his ilk are middle men. They see paying someone too much as a problem. They think everyone is an interchangeable cog. At that level of salary and compensation money is basically meaningless to them. They just want to make sure they have the most. They do not realize you really do get what you pay for. Because they do not have to 'bargain hunt'. They just buy whatever someone else tells them is the best. You get what you pay for. Just ask circuit city.