Chipotle is rallying ahead of its first earnings report with its new CEO

William Brinson

• Chipotle Mexican Grill is rising before its first-quarter earnings report, which is due out after the closing bell.
• Chipotle is still struggling to win back customers after its E. coli outbreak two years ago and needs a plan for improvement.
• This will be the first quarterly results under the leadership of CEO Brian Niccol, who joined the company in March.
• Watch Chipotle Mexican Grill trade in real time here.

Chipotle Mexican Grill is rallying ahead of earnings, trading up 2.08% at $340.03 a share. The burrito chain has struggled to repair its image since an E. coli outbreak two years ago sent shares into a tailspin, with nearly two-thirds of the company's value erased at its lowest point.

In order to do so, Chipotle brought in ex-Taco Bell CEO Brian Niccol in March. This will be Niccol's first earnings call as CEO, and investors will likely be tuning in to see what kind of tricks the new management has up its sleeve.

Niccol, best known for pushing creative marketing and innovative new menu items at Taco Bell, will bring a new perspective to the company after 24 years under founder Steve Ells.

Though the market remains skeptical, Bernstein analyst Sarah Senatore sees "significant opportunities" for the restaurant chain. She points out the company's new waste diversion goals puts effort into making the business more efficient without losing quality and that the move indicates expenses have been under managed in the past.

"A new advertising campaign suggests that Chipotle creative has already started to improve," Senatore wrote in a note. She maintains an "outperform" rating.

Wall Street is expecting Chipotle to report earnings of $1.57 a share on revenue of $1.15 billion, according to analysts surveyed by Bloomberg.

Chipotle shares have gained more than 17% this year.

Markets Insider