"Shares of Chipotle Mexican Grill ( NYSE: CMG) collapsed over 20% on growing concerns about affordability and signs of a weakened US consumer. Things were already bad for the stock going into earnings, but the results combined with management's bluntly negative comments were the final blow. Today, nearly half the stock's value from its 52-week peak of $66.74 has been erased."
"Unsurprisingly, this coincides with a sharp deterioration in retail trader and investor sentiment across Reddit, X, and other investor forums. Trade volume shows the exodus, with it spiking to 110 million shares traded two days ago. That is nearly 4 times normal daily activity and signals institutional repositioning amid panic selling. The earnings miss (revenue of $3.00B versus $3.02B expected) combined with weak same-store sales growth of just 0.3% is contributing to the growing concern."
Chipotle Mexican Grill shares collapsed more than 20%, erasing nearly half the stock's value from its 52-week peak of $66.74. The company reported revenue of $3.00B versus $3.02B expected and same-store sales growth of just 0.3%. Trade volume spiked to 110 million shares, nearly four times normal, indicating panic selling and institutional repositioning. Retail investor sentiment on Reddit and X turned sharply bearish, with viral posts warning that customers cannot afford higher-priced menu items. The market is repricing Chipotle amid concerns that consumers can no longer digest continued price hikes.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]