"Chipotle Mexican Grill Inc. ( NYSE: CMG) cut its full-year forecast for same-store sales during its third-quarter earnings report, citing changes in consumer spending. This resulted in some Wall Street analysts lowering their price targets and the stock pulling back around 20% to a new 52-week low of $29.75. The share price is 27.8% lower than six months ago, underperforming the S&P 500 in that time."
"Chipotle Mexican Grill has developed a large Gen-Z following, along with its loyal customers, who appreciate the health-conscious menu and the dining experience that falls between fast food and fine dining. Chipotle offers burritos, tacos, and salads, among other items that vary throughout the year. The company sources organic produce and responsibly raised beef and chicken for its offerings. Nevertheless, investors are concerned with future stock performance over the next decade."
Chipotle reduced its full-year same-store sales forecast due to shifts in consumer spending, which led some analysts to cut price targets and the stock to drop roughly 20% to a 52-week low of $29.75. The share price is 27.8% lower than six months ago and has underperformed the S&P 500. Analysts still on average recommend buying and project nearly 15% upside over the next year. Chipotle has strong Gen-Z appeal and loyal customers attracted to a health-conscious menu and an experience between fast food and fine dining. The company sources organic produce and responsibly raised proteins. Investors remain worried about long-term performance given inflation, volatile food costs (notably dairy and avocados), rising labor costs, weaker consumer spending, and fierce fast-casual competition. 24/7 Wall St. intends to provide farther-looking insights using company numbers and market information to aid research.
Read at 24/7 Wall St.
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