Is Chipotle Mexican Grill Stock in Trouble?
Chipotle Mexican Grill (NYSE: CMG) stock hasn't been a hot buy with investors for some time. In the past year, its shares are up just a modest 10%. That's well below even the S&P 500's gains of more than 20% over that same stretch. And while the stock's valuation isn't cheap, in the past, investors were willing to pay a premium for it simply because it was such a great growth business to invest in. Its price soared so much that the company did a massive 50-for-1 stock split last year.But the enthusiasm in the business looks to be waning. The stock isn't surging anymore, and it's now trading below where it was when it split its shares. What's wrong with Chipotle, and should investors be worried?Chipotle's impressive growth over the years has captivated investors and convinced them that it's a solid stock to own. But recently, cracks have been showing in the business as demand looks to be slowing down. Here's a look at the company's revenue growth and its comparable sales growth rate in each of the past four quarters.Continue reading
Chipotle Mexican Grill (NYSE: CMG) stock hasn't been a hot buy with investors for some time. In the past year, its shares are up just a modest 10%. That's well below even the S&P 500's gains of more than 20% over that same stretch. And while the stock's valuation isn't cheap, in the past, investors were willing to pay a premium for it simply because it was such a great growth business to invest in. Its price soared so much that the company did a massive 50-for-1 stock split last year.
But the enthusiasm in the business looks to be waning. The stock isn't surging anymore, and it's now trading below where it was when it split its shares. What's wrong with Chipotle, and should investors be worried?
Chipotle's impressive growth over the years has captivated investors and convinced them that it's a solid stock to own. But recently, cracks have been showing in the business as demand looks to be slowing down. Here's a look at the company's revenue growth and its comparable sales growth rate in each of the past four quarters.
