Financial PerformanceCMG projects Q3 restaurant-level margin near 25%, below prior consensus of 26.9% due to the mix shift toward Smoked Brisket (higher-cost protein), rising commodity costs, and a decision to lean in on portion sizes.
Leadership ChangesThe announced departure of Chairman/CEO Brian Niccol seems likely to weigh on near-term investor sentiment when considering our view that Niccol is an exceptional executive and has been a key factor in the company's success since he arrived as CEO in 2018.
Operational IssuesConsistency varied widely, with some locations serving bowls that weigh approximately 33% more than other locations on equivalent orders.