More Buck for your Burrito

Chipotle Mexican Grill posted its first profit decline since going public in 2006 on Wednesday, as it battled higher ingredient costs and a slowing U.S. economy. The restaurant operator said sales were still positive but growth has slowed. The quarterly results from Denver-based Chipotle, a former Wall Street darling, comes amid worries financially stressed consumers will skip even more restaurant visits as they weather a housing slump, credit crisis and rising unemployment. "These tough economic times make it harder for customers to afford to eat out," Monty Moran, president, said during a conference call. "We know that some of our customers are forced to visit us a little less frequently than they were a year ago." Chipotle, known for serving premium-priced naturally raised meat, said third-quarter net income fell to $19.5 million, or 59 cents per share, from $20.6 million, or 62 cents per share, a year earlier. Chipotle said it plans to raise prices in the fourth quarter.

ISF: Yeah, that's interesting. You want to increase sales, yet you increase prices. Hey, Monty--don't you think people will be LESS inclined to dine at your restaurants if they see that they're not getting the value they're used to? Just a thought from someone who's NOT a company president, but understands the value of his dollar and would rather see it go towards something of more importance in HIS life than YOUR salary and bonus this year.

Something Stinks Here

7/23/08: Wachovia Corp. lost a staggering $8.9 billion in the second quarter, leading the nation's fourth-largest bank to cut its dividend and slash more than 6,000 jobs in response to mortgage-related losses. The bank's results were much worse than Wall Street anticipated, a stark contrast to its big bank rivals that handily beat the low targets analysts had set. Wachovia said it lost $8.86 billion and is slashing its dividend after losses tied to mortgages soared. The bank also said it would lay off 6,350 current employees, and leave unfilled another 4,400 open positions. The bank has already cut 2,000 retail mortgage jobs, it said.

9/9/08: Just for taking the job, Wachovia Corp.'s new chief financial officer gets an upfront bonus of $4 million, 1 million stock options and 800,000 shares of restricted stock, the Charlotte bank said in a filing this morning. Under his employment agreement, the new CFO each year gets a salary of $500,000, a target bonus of $3.75 million and a target stock grant of $3.75 million. For 2008, he will receive a guaranteed minimum bonus of $937,500, payable in February 2009. The agreement also allows for severance payments if he is terminated for “good reason” or “without cause.” The company also will cover taxes owed if he loses his job in the case of a merger or acquisition.

Fair Trade

Caribou Coffee Co. announces their new Fair Trade coffee.

And speaking of fair trades, Caribou is replacing Chairman and CEO Michael J. Coles, who oversaw the growth of the nation's second-largest coffee chain but not of its stock price. A regulatory filing Tuesday said that in six months Coles would get $1.35 million in exchange for agreeing not to sue for "termination without good cause." Coles will stay with the company as a director.

You suck, but we're going to give you $1.35 million dollars of money we don't have because of your crappy work AND we're going to keep you on staff, too. You can shuffle papers, right?