The Trial Balance is CFO’s weekly preview of stories, stats, and events to help you prepare.
Part 1: Chipotle’s CFO makes big move despite recent backlash
Chipotle’s CFO, Jack Hartung, who has been with the company since 2002 and has significantly contributed to its growth in both company size and stock price, is seeing the chain make an intriguing move.
The company recently decided to split its stock and starting tomorrow, a share of Chipotle will cost approximately $64, a drastic reduction from the current approximate rate of $3,200 per share, reflecting a 50-1 split. “We believe the stock split will make our stock more accessible to our employees as well as a broader range of investors,” Hartung said in a company release.
However, investing in Chipotle right now could be considered a risky move. The company has recently faced increased backlash from the press and customers on social media regarding its food and service. The situation escalated to the point where the CEO went on television, advising customers who feel shorted on portions to subtly nudge the worker and ask for a bit more, creating further confusion for both customers and Chipotle workers.
Although reporter Adam Zaki and Jack Hartung did not discuss portion sizes in their interview, they did talk about maintaining standards during growth in their interview from November of last year.
“It all starts with the food… we learned it was essential to craft a supply chain that could properly transport all ingredients necessary to provide the same product,” Hartung said. “We also learned our business model needed to be unique. We couldn’t franchise and expect our business owners to hold to the standards we do. Our approach was we’ll own the restaurants, we will do the hiring, and we will control our growth and expansion.”
For CFOs, Chipotle’s next set of moves offers an interesting real-life case study on how to grow a massive company while dealing with inflation costs, a public flop by the CEO in an attempt to relate to customers and overcoming scrutiny that challenges the fundamentals of the business.
Part 2: FloQast data, DUDE Wipes CFO and tax and accounting social media influencer Jasmine DiLucci
This week, reporter Adam Zaki interviews Jeffrey Klimkowski, co-founder and CFO of DUDE Wipes. After appearing on NBC’s Shark Tank in 2015, Klimkowski played a major role in convincing billionaire Mark Cuban’s backing of his company. Now, nearly a decade later, DUDE Wipes has grown into a highly profitable, nine-figure brand. Zaki and Klimkowski discuss growth, how he represents his brand and how to balance being a founder and a CFO. (6/27)
Zaki will also publish new data from FloQast (6/26) on how accounting and finance leaders are embracing the multiple facets of transformation they’re currently facing, and a story on the perception of careers in finance and accounting featuring takes from Blake Oliver and David Leary, hosts of The Accounting Podcast, and Jasmine DiLucci, a Dallas, Texas-based tax attorney who has created a significant following online creating social media posts on tax and accounting laws. (6/28)
Part 3: The week ahead
Here’s a list of important market events slated for the week ahead.
Monday, June 24
- Dallas Fed Manufacturing, June
Tuesday, June 25
- S&P Case-Shiller home price index, April
- FHFA home price index, April
- Consumer confidence
- Richmond Fed manufacturing, June
Wednesday, June 26
- New home sales, May
Thursday, June 27
- First quarter GDP, third estimate
- Durable goods orders, May
- Pending home sales, May
- Kansas City Fed manufacturing activity, June
Friday, June 28
- PCE inflation, month-over-month, May
- PCE inflation, YoY, May
- Core PCE inflation, month-over-month, May
- Core PCE inflation, YoY, May
- Personal income, May
- Personal spending, May
- University of Michigan consumer sentiment, June
