Chipotle is having yet another rough day, although this time it has nothing to do with people getting violently ill from eating their product or other people expressing their disgust with the chain's queso. Wall Street has downgraded the chain's stock because they say Chipotle's wages are too high, since as we all know, capital is what creates value and not labor.
Bank of America, which escaped any consequences for helping to crater the economy in the late aughts, warned investors that Chipotle's labor costs are too high and that they're predicting the stock will "underperform" according to CNBC.
"We believe further gains from trimming hours will prove difficult which limits the opportunity to get labor below 27 percent of sales even if traffic recovers," the bank, a recipient of billions of dollars of money in bailouts from the federal government during the financial crisis, wrote to investors.
Chipotle crew members are paid an average of $9.54 per hour and managers an average of $14.68 per hour according to indeed.com, wages that fail to meet the standard of $15 per hour that labor organizers have been pushing for. Employees do get a variety of benefits from the company, including health insurance, paid time off and even tuition assistance, which seems only fair in a country where service sector jobs are completely outpacing manufacturing jobs as a path to a decent or even any job at all.
Even with a cutback in hours from an average of 34 to 21, BofA contends that Chipotle is spending too much money on something frivolous like "human labor at fair compensation." In unrelated non-frivolous spending news, Bank of America paid $140 million for the rights to put their name on a football stadium, a brilliant deal pegged as "one of the richest naming-rights pacts in the NFL."