"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 now is 25.9% 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."
"Persistent inflation and high menu prices have led to a decline in foot traffic, particularly among younger and lower-income diners. Rising labor costs and accelerating inflation for key ingredients like beef, dairy, and avocados continue to squeeze profit margins. Comparable restaurant sales declined in the low single digits for 2025, marking a significant slowdown after years of robust, double-digit growth."
Chipotle cut its full-year same-store sales forecast, citing changes in consumer spending, which contributed to a roughly 20% stock decline to a 52-week low. The share price is about 25.9% lower than six months ago and has underperformed the S&P 500, while analysts on average continue to recommend buying shares with a consensus target implying about 11% upside. Chipotle maintains a strong Gen-Z and loyal customer base attracted to its health-conscious menu and responsibly sourced ingredients. The company faces challenges including persistent inflation, high menu prices reducing foot traffic, rising labor and ingredient costs, and a slowdown to low-single-digit comparable sales.
Read at 24/7 Wall St.
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