Ackman Addresses Chipotle Issues

Bill Ackman said Monday that Chipotle Mexican Grill, Inc. CMG is imminently fixable and he's hoping the company is going to recover.

Speaking on CNBC, Ackman said he's optimistic, because there are still lines in the stores and the issues the company is facing are addressable through better operations and better oversight. Other restaurants, like McDonald's Corporation MCD and Burger King had up and down cycles, said Ackman, implying similar cycles are possible for Chipotle.

Ackman finds Chipotle interesting because he sees it as the least optimized of the quick-service restaurants. The company doesn't have a drive-through, it's not serving breakfast, it's not active abroad and it doesn't have a mobile app, explained Ackman. He added that the mobile app would reduce lines, which are now turning the customers away.

The valuation is cheap if you consider earnings over the next six years, according to Ackman. He emphasized that the company has to recover from the food safety crisis and he explained that almost every fast food company successfully recovered from food safety crisis.

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