A Bloomberg analysis is not optimistic about Chipotle’s new big-money guy, Bill Ackman

News broke yesterday that a guy named Bill Ackman had put $1.2 billion into Chipotle’s stock. He’s an activist investor, meaning that he’s going to use his new 10 percent share of the company to force change at the company.

That won’t be such an easy task, according to a new analysis by Bloomberg.

It’s worth a read, complete with lots of pretty charts, but we’ll give you a  few key points of concern here.

First, Ackman has a mixed record. He did really well with a Canadian railroad company, but he failed to cause much of a turnaround at J.C. Penney, Bloomberg reports. Chipotle may be more like J.C. Penney, in that “fixing consumer companies is harder than it looks.”

The Bloomberg authors, Shelly Banjo and Tara Lachapelle, are not optimistic about Chipotle’s turnaround so far, saying management seems “out of touch.”

Plus, the chain is still opening new restaurants even as those new restaurants make less money, Bloomberg reports. Head over there for the rest.

Weird times

Denverite is powered by you. In these weird times, the local vigilance, the local context, the local flavor — it’s powered through your donations. If you’d miss Denverite if it disappeared tomorrow, donate today.

You’re our superpower

Denverite supporters have made the decision to financially support local journalism that matters to you. Ready to tell your networks why? Sharing our “About” page with your own personal comments could really help us out.

You’re our superpower

Denverite members have made the decision to financially support local journalism that matters to you. Ready to tell your networks why? Sharing our “About” page with your own personal comments could really help us out.