Chipotle Mexican Grill Inc. shares rose the most in more than five months on renewed optimism that the chain can bounce back from its food-safety crisis.
Chipotle told analysts at an ICR conference in Orlando, Florida, that it can regain the trust of customers and restore its industry-leading restaurant margins, according to Howard Penney, a managing director at Hedgeye Risk Management who attended the talk. Chipotle also reiterated that it has no plans to slow the pace of new restaurant openings, with as many as 235 slated for 2016.
“The thing that matters most for the stock is that they believe they’re going to get back to where they were,” said Penney, who laid out a case to bet against Chipotle shares in November. The company contends that “it was a blip on the road to creating a big change in the way people eat,” he said.