# Disney Leadership Shift, Chipotle Slump, and GLP-1 Market Divergence

**Podcast:** Motley Fool Money
**Published:** 2026-02-04

## Transcript

Disney has their new CEO.
Is this time different?
Motley Fool Money starts now.
Welcome to Motley Fool Money.
I'm Travis Hoyam joined today by Lou Whiteman and Rachel Warren.
The Bob Iger era is officially coming to a close on March 18th, Lou, after Josh DeMaro was chosen to be the next CEO.
Dana Walden, who was in the running to be CEO, is going to be promoted to chief creative officer.
They both got big contracts along with that.
Let's start with Iger.
How are we gonna look back on his tenure over the last 20 or so years at Disney?
Yeah, the two tenures, right?
Which is what's kind of funny about it.
Uh, he's had an incredible career.
Let's just say that first.
Uh, the most recent tenure, he turned streaming around.
Streaming was a $2 billion plus loser back in 2022.
It's now a profitable business, a billion dollars in profits.
I think, you know, he gets a lot of credit for that.
Part of that is just maturation, so I don't know how much credit.
Uh, here's the thing though.
The stock price really liked his first tenure more than the second.
If the stock has done nothing, how much of that is him and how much of it is again the maturing business and the market's losing faith in that core television business.
I don't know, I don't know how much credit to give him for his accomplishments or how much fault to give him for his failures with the stock market.
I will say this, he was a steady hand at the ship.
The question now is will he become Howard Schultz?
You know, with will he actually go away?
Will he come back again?
Will he, you know, I mean, I there's even rumors he's gonna run for president, which again would kind of guess get him off of Disney's case for a while.
But we really need, we can talk about what this means for Disney afterwards, but we really need for him to either walk away or stay involved one.
Or stay on for life.
Yeah, yeah, yeah, yeah.
Yeah.
And and and the worst scenario is a repeat of last time where he kind of didn't need neither.
And that didn't work out well.
What is what is different this time is they they apparently had over a hundred people on their radar for this job.
I think that's always interesting because there was really only two or three who were seem to be seriously in the running.
But his tenure is gonna end about nine months early from their the contracted end at the end of 2026.
And there's a story there, right?
I don't know what it is.
Yeah, there's there must be a story.
Well, and he's also he's gonna be a str an advisor, but not have a real role coming into the office, which he did have when ChayPak took over going into the pandemic.
So yeah, it seems like there's definitely a story.
There always is in these, you know, Palace Intrigue things, but it does seem a little bit different this time.
Like Disney knows they have to kind of kick him out the door.
One thing on those 100 candidates, Baldur Dash.
There's no way they had a hundred candidates.
I mean, what's its expression in football?
They wrote a list with 100 people on it.
Right, right.
If you have two quarterbacks, you have no quarterback.
If I took that seriously, that they really had a hundred people interview, that means they had no clue what they wanted.
I'm gonna give the benefit of the doubt to the board that it that maybe, maybe they had a list of a hundred people, but they didn't really consider 100 people there.
To me, that would be more scary than um than positive.
Rachel, are we're gonna look back on this IGR tenure, especially the last decade positively?
I think so.
And I and I agree with Lou.
I think you have to look at both tenures together.
I mean, you think of that first one, right?
From 05 to 2020.
I mean, there was really a series of very transformative acquisitions that formed the company we know today.
You think of the acquisitions of Pixar, Marvel, Lucasville.
You know, this really built that modern Disney content engine that we know.
I mean, Iger grew Disney's market cap from about 56 billion to more than 230 billion during that initial run.
And then you look in these last few years, you know, he returned in late 2022 to replace Bob Chapik.
And really that second stint has been focused on stabilizing the company, right?
You know, so he implements about $5.5 billion in cost cuts, really working to achieve streaming profitability, a lot of challenges that the company has faced during that time, including the Hollywood labor strikes.
And so I think that a lot of the last few years has been more about stabilization and some of the growth that investors had come to expect in prior years.
One thing I'll note, I mean, Iger's planning to remain senior advisor and board member through the end of 2026 to mentor new leadership.
And presumably that might help the company to avoid some of the mistakes, if you will, that occurred during the CHAPEC era.
So I think that's something that investors should feel you know pleased with as they're looking at this transition.
I think it's a much better thought-out, well-planned, orderly transition than perhaps we saw before.
Lou, let's look forward now.
We do know that tomorrow is coming from the parks.
CHPEC, by the way, also came from the parks, which I that was one thing that I noticed.
And I went, uh, we already tried this once.
Do we really want to do this again?
But it does seem you're right.
It does seem like the linear business and the streaming business at least sort of makes sense now.
Back back then, back in 2019, 2020, it was Disney Plus was a rocket ship, but they obviously overbuilt.
You had all this confusion during the pandemic.
But now we know that look, the parks is the core of the business.
Now the question is what happens to the rest of the business?
What happens to these linear networks?
In particular, what happens to ESPN?
Where do you think Disney goes from here?
Yeah.
So here's a bold prediction.
I can't imagine Disney without the studio.
So I'm not gonna go as far as like, you know, total spinoff.
Which which studio?
All the Disney studios.
The production, because there's so much tie-in.
I mean, maybe they just do it with alliances, but some for form of a media spin-out.
I think definitely ESPN, maybe Hulu and ABC.
You know, we've talked a lot about what's going on with Warner Brothers Discovery and about the limited number of chess pieces.
I think there's more chess pieces than we know.
I think the Disney of the future is going to be somehow more streamlined.
We talked about the stock.
Stock has done nothing for years with all of these great assets.
And it really feels like whether we're talking about GE, whether we're talking about so many of these companies, that it's time to wonder is the sum of the parts, you know, trailing the valuation of the whole.
Maybe they do go with everything and just form an old you know, some sort of perpetual marketing agreements.
So they can use the uh IP of the studios and the parks.
But I really think that there's gonna be some sort of a spin-out of media or some sort of a separation of Disney.
I'm gonna say we're gonna hear something about this in the next couple of years, but definitely in the next five years.
Yeah, if we look back on the early Bob Iger tenure, a lot of those big moves that he made buying Pixar, buying Marvel was done in the first couple of years.
I think Pixar, he it sounds like he made that call to Steve Jobs basically as soon as he got the job.
Uh so the wheels were spinning there.
It will be interesting to see what tomorrow does.
When we come back, we are gonna talk about Chipotle and why people are eating out less.
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Chipotle's results were reported last night, and they left a lot to be desired in a lot of ways.
Rachel, what should we take from this quarter at Chipotle?
We had a lot of negative comps, but this is this seems like a theme with a lot of restaurant stocks right now.
Yeah, there's certainly a theme that we're seeing with a lot of these fast casual chains.
So for Chipotle, transactions in Q4 dropped by about 3.2%.
And this is as we're seeing consumers, particularly those in the 25 to 35 age group, that's really a co core cohort for Chipotle, as well as those earning uh, you know, under 100k annually, those are people that are really pulling back on discretionary spending.
So operating margins actually fell a bit compared to a year ago, down to 14.1%.
We're also in a time where rising beef, avocado, and labor costs that the companies chosen not to fully offset or impacting margins there.
They slightly beat on earnings per share.
They were marginally ahead of the consensus estimates for revenue.
That was up about 5% year over year.
They're still growing aggressively.
You know, they're they opened about 132 new restaurants in Q4 alone.
They're looking to open up to 370 new locations in 2026.
A few things that I think we should note, kind of looking at this space.
I mean, Chipotle is dealing with issues that some of its rivals are as well.
You know, sweet green, kava are a few that come to mind.
We're seeing kind of a shift in how consumers are approaching restaurant spending.
We're seeing some of these sit-down chains.
Think of, you know, Darden restaurants, they own Olive Garden, Texas Roadhouse are gaining market share.
I think consumers are becoming increasingly picky about where they're gonna put their money to work.
And sometimes they're prioritizing those sit-down experiences.
At the same time, McDonald's has been actually holding pretty steady in terms of their growth.
Taco Bell's been a standout performer within Young Brands.
Starbucks is even showing some improvements.
So systematic challenges in the industry at large.
Chipotle, I think, is dealing with more broader industry headwinds than company specific issues, but I would not expect this to resolve in the next few quarters.
Uh in Chipotle's call, they mentioned it twice.
And it was actually in relation to their new protein bowl, bowl of chicken for $3.80.
Yeah, they invented the nugget.
Yeah.
It's the new version of the nugget.
Slightly healthier than a nugget make maybe maybe.
But it it is interesting that that seemed to be their answer not only to GLP ones, but also people spending less.
Saying, hey, if you just want to spend four bucks on some chicken, come here.
Yeah.
It's a weird time because uh Rachel's right, some of this does seem to be just maybe stress on the consumer.
I think it kind of makes sense that if the consumer is stressed, they still do planned night outs or special occasion.
And you still on the fly, but that middle ground where you could go home and cook or save a little money, but you know, you may just get carry out or something.
That that fast casual is what's suffering.
I do wonder though, I mean, that implies it's short term.
I do wonder if some of this is is that we're just so saturated.
We've talked about this before.
This category didn't exist when I was growing up.
It is, you know, from scratch, and it has been nothing but growth.
Maybe we've reached the natural limit to this market, and we have a lot of competitors here.
So maybe this speaks to kind of a longer term problem.
What I do know, fourth straight quarter of traffic declines.
The good news is they are forecasting flat same store sales in 2026, which would be better than down.
Down in 2025, Travis, last time they were down was the E.
coli scandal a decade ago.
So, you know, which by the way was a great buying opportunity.
It was that time because they were young.
Here's my question.
I mean, they're talking about growth overseas.
That's the big thing.
Maybe Middle East wants wants this, may Singapore, South Korea, and yes, Mexico.
I don't know if that's going to be the path forward, the way from say 2016 to 2025, things improve.
You're still paying 30 times forward earnings for a mature business, period.
Okay.
And you know, I'd rather get a burrito bowl right now from them than get a share of the stock.
I I like the company.
I just the growth phase is over.
And what are you left with?
It will be very interesting to see what happens not only with Chipotle, but with restaurants in general.
We'll have another uh few earnings reports coming out in the next few weeks.
And GLP ones are going to be a topic.
And speaking of those GLP ones, they're not all great for even the pharmaceutical companies.
We'll get to that in a moment.
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The GLP One craze was started by Eli Lilly and Novo Nordisk, are really the two companies that are associated with this.
But Rachel, Novo Nordisk took a huge hit in the market, and they're actually expecting a decline in the business.
What is the story behind this?
It seems like GLP one should be just growing forever, but it seems like the competitive dynamics are really changing there.
Yeah, this is really a tale of two very different businesses.
I mean, you think about Novo Nordisk, they had a much kind of slower growing insulin business before they enjoyed the boom from their GLP one success.
Eli Lilly had a much more kind of established, broader, diverse range of products that they were selling and a much more profitable foundation from which to launch into that growth.
And we are seeing a real disparity in how these two companies are performing.
So Novo Nordisk, they're targeting anywhere from a 5% to thirteen percent decline in sales and profits for 2026.
They've said that the most favored nation pricing deal they reached with the Trump administration has been impactful here.
But there's a lot of factors here as well.
You've got key patents for semaglutide.
That's the active ingredient in Ozempic and Wagovee.
Those are expiring in major international markets soon, including China, Canada, and Brazil.
There's, of course, uh the loss of market share to key rivals like Eli Lilly, but also some of the cheaper uh copycat, if you will, compounded versions of its drugs.
CEO is saying this is going to be a very challenging year.
So all of that does not bode particularly well for the company.
Now, contrast that, you've got Eli Lilly.
They had record results.
They're looking for their full year revenue to rise as much as 25% in 2026.
Meanwhile, even as Novo Nordisk they launched their oral semaglutide, Eli Lilly's looking for approval for their next generation weight loss pill in mid-2026.
That's broadly expected to really cannibalize a lot of the sales in the market.
They had a 43% revenue increase in Q4 alone.
They saw sales of their key GLP1 drugs both jump by more than a hundred percent.
And Eli Lilly became the first pharma company to surpass a one trillion dollar market cap in 2025.
So, yes, there are some industry-specific challenges, but I think the issues that Novo Nordisk is facing are much more specific to that business.
Yeah.
I mean, it's just uh, I mean, who knew?
It's a terrible joke here.
Who knew the GLP ones were slimming for uh Nova Nordist, right?
But uh, does anyone not have a GLP one at this point?
It feels like I mean, like Rachel said, Yeah, and there's more coming to the market over the next couple of years, too.
Pricing headwinds in an increasingly competitive market.
How many times was that said?
I mean, you know, you talk about the restaurant stocks.
How awful was GLP ones sudden their calls?
How often was just pricing headwinds said on the NOVO?
The oral was supposed to be the solution here.
But if you look at it, it's 2.4 milligrams versus 25 milligrams for the oral.
That's 10x the amount of active ingredient.
I'm curious, we're seeing margins fall.
How much of that is just startup here, and how much of that is somewhat permanent if they do quote unquote succeed in moving people to the oral version?
What does that do to profitability?
That seems like a slippery slope as far as that being the answer.
I don't know if Novo has a good answer right here.
And as you say, it's only going to get more competitive from here.
I get the market's reaction.
Again, another thing that is gonna be fascinating to follow because this has been a huge growth story for a number of different companies and a lot of speculation behind some of the new GLP ones that are that are coming.
But yeah, like Lou said, if you're coming into a very competitive market, maybe it's not the best to be those producers which are having margin pressure, even if you have higher volume.
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Or Lou Whiteman, Rachel Warren, Dan Boyd, and Christy Waterworth behind the glass, I'm Travis Hoyam.
We'll see you here tomorrow, and we're going to be able to get a lot of people.