Full Answer
What happened to Chipotle stock?
· Fear of the Unknown. There’s another potential reason for the stock’s sharp, post-earnings drop-off. Management expressed confidence in the company’s ability to manage the twin problems that are emerging from a labor shortage along with higher operating costs both in the cost-of-goods sold (COGS) and in shipping costs.
Can Chipotle ever return to profitability?
· Casual restaurant chain Chipotle Mexican Grill, Inc. (NYSE: CMG) reported Tuesday with fourth-quarter results that prompted a 3% selloff in shares by Wednesday morning. Here's how the Street ...
Is Chipotle still attracting diners after food safety disaster?
· Shares of Chipotle drop 6% after the company discloses a new subpoena related to a 2018 foodborne illness outbreak. In August, Chipotle confirmed that bacteria caused an outbreak of illness at the...
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· Chipotle Mexican Grill ( CMG 2.60%) stock is getting singed today, down 5.2% as of 12:35 p.m. EDT on news that the City of New York is suing the fast-casual food chain for violations of the city's...
Why do you think there was such a huge decrease in price of Chipotle's stock in January 2016?
The aftermath of Chipotle's food safety crisis in 2015, when cases of E. coli and norovirus popped up at Chipotle restaurants around the country, led to a steep drop in sales and profits in 2016. With the company unable to recover quickly, investors spent the year selling off the stock.
Why did Chipotle stock jump?
Share of Chipotle jumped nearly 7% in after-hours trading after the fast-food chain reported higher-than-expected earnings for the latest quarter.
Is Chipotle a good stock?
Summary. CMG's Q4 2021 results were good, with its comparable restaurant sales and adjusted earnings per share beating market expectations. Chipotle's share price increased by an impressive +32.5% in 2021, but I think it iwill be difficult for CMG's shares to continue to rise this year.
Is Chipotle stock overvalued?
Is Chipotle Stock Overvalued. If we look at CMG's P/E ratio, it does look high at 49.68x FY2022 consensus EPS estimates. However, the company is expected to post solid EPS growth over the next few years and its P/E ratio based on FY2025 consensus EPS is ~22.59.
Why is Chipotle's share price so high?
Its share prices are back to the trajectory they were on pre-Covid, bucking the industry trend and leaving a spotlight on this company for better or worse.
Why is Chipotle stock higher than McDonald's?
The reason is CMG's rapid revenue growth rate over the last 10 years compared to McDonald's. Note CMG has averaged 13%/year revenue increases since 2013 compared to McDonald's -2% per year.
Who is Chipotle's biggest competitor?
Qdoba Mexican Eats, Moe's Southwest Grill, Baja Fresh Mexican Grill, and Rubio's Coastal Grill are Chipotle's main competitors. Although it is fast-food-oriented rather than fast-casual, Taco Bell has also started to compete with Chipotle by improving the quality of its food.
Is Chipotle stock a buy or sell?
The consensus rating is a solid “buy.” However, 23 of 35 analysts who follow the stock rate it a “hold,” four rate it “underperform” and one rates it a “sell.” The average analyst price target is $1,929.37 in a range of $1,630 to $2,600.
Why should I invest in Chipotle stock?
Chipotle stock trades for more than 60 times trailing earnings and 49 times the 2022 analyst EPS consensus of $31.64. That represents a big premium to the broader market. To be fair, Chipotle stock has nearly always traded at a premium valuation, and it has still performed very well for long-term investors.
Is there chick fil a stock?
Unfortunately for potential stock market investors, Chick-fil-A is a privately held company and therefore does not trade on the stock market. This means there is no Chick-fil-A stock symbol or stock ticker to look for on Robinhood or any other broker.
Is CMG undervalued?
PB vs Industry: CMG is overvalued based on its PB Ratio (18.1x) compared to the US Hospitality industry average (3x).
How is Chipotle so good?
One of the keys to Chipotle's success is its small menu. A smaller menu has three benefits. First, since Chipotle only stocks fresh ingredients, there is always a chance of food spoilage. The small menu reduces the number of ingredients needed on-hand, thus reducing the likelihood of waste.
New York Mayor Bill de Blasio takes aim at the burrito maker
I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.
What happened
Chipotle Mexican Grill ( NYSE:CMG) stock is getting singed today, down 5.2% as of 12:35 p.m. EDT on news that the City of New York is suing the fast-casual food chain for violations of the city's Fair Workweek Law.
So what
Citing complaints from "more than 30 workers from five different Chipotle locations in Brooklyn," the DCWP is alleging that Chipotle "violated nearly every aspect of the City's Fair Workweek Law, including failing to provide good faith estimates of work schedules and schedules two weeks in advance, failing to get consent and pay premiums for last minute schedule changes and for working 'clopenings,' and failing to offer newly available shifts to current employees." In addition to the five locations where employees complained, the city is investigating "11 Chipotle locations in Manhattan for similar alleged violations under the Fair Workweek Law.".
Now what
DCWP is bringing its action before the New York Office of Administrative Trials and Hearings (OATH). No trial date was stated -- and it's entirely possible there will be no trial.
Is chipotle going to return to comparable sales?
Chipotle expects to return to comparable sales growth in 2017, although two-year comparable sales will likely remain negative. The company is aiming for around $10 of per-share earnings for the year, a major improvement over 2016 but well below the EPS of $15.10 Chipotle reported in 2015.
What is chiptopia program?
Chiptopia, a temporary rewards program that ran during the summer months, was the company's first foray into the world of loyalty programs. Prior to the outbreaks, customers needed little prodding to visit the Chipotle's restaurants.
The burrito chain dipped again as investors continued to balk at restaurant stocks
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What happened
Shares of Chipotle Mexican Grill ( NYSE:CMG) were falling again Tuesday as investors continued to bail from restaurant stocks as the coronavirus outbreak spreads across the country. What was different about today was that Chipotle shares sank even while the broader market rallied on hopes for a stimulus bill.
So what
Last night, New York, New Jersey, and Connecticut, which have combined population of more than 30 million people, implemented a ban on restaurants (except for takeout and delivery), and a similar law was imposed in the San Francisco Bay Area.
Now what
There's no doubt that Chipotle's financial results are going to take a hit over the coming weeks, or more likely months. But the stock has now fallen more than 41% since the coronavirus-related sell-off began on Feb. 24, compared with a retreat of about 25% in the S&P 500 .