After offending farmers everywhere with their aggressive ad campaign claiming local-raised food is healthier and anything else is just plain bad, Chipotle is feeling the effects of what some would call Karma.
According to Gary Truitt, Chipotle has seen a shift downward in its stock shares recently, falling 7% to $495.92. The burrito giant also saw its proposed executive pay plan voted down by 77% of shareholders last Thursday. Since the plan was denied, the entire pay structure of higher level employees within the company will now be reviewed.
Wall Street analysts said that Chipotle’s top management earns nearly five times more than top executives in similar food chains. Last year alone co-CEO’s Steve Ells and Monty Moran made nearly $50 million combined.
Chipotle is not the only guilty party in the farmers vs. food joints saga. Multiple sources reported Panera Bread officials as calling farmers partaking in biotechnology, “lazy”. After the bashing of biotechnology Panera Bread saw their shares fall almost 12%. Could this be a coincidence?
A scene from Dodge Ram's "So God Made a Farmer" campaign. There are some companies and food chains doing just the opposite of their censuring-counterparts. Take Dodge Ram and their “God made a farmer” commercial, debuting during the 2013 Super Bowl, they were named Motor Trend's Truck of the Year for 2014, increasing truck sales by 17% in a year. McDonald’s, known for working with farmers, has also seen increases. The fast-food mecca has experienced annual sales increases every year for the past ten years.
Read more about the Chipotle vs. farmers story here
Source: Hoosier Ag Today