Chipotle Is Up 17% in 1 Month. Is It a Top Buy Before July 29?
The fast-casual Mexican chain is no longer a growth-oriented company, which suggests that its current rally will fizzle soon.
Overview
Chipotle Mexican Grill (NYSE: CMG) is experiencing a bit of a comeback on Wall Street. The stock is up by 17% over the past month as earnings approach. However, it has been a tough year for the stock, and the road to a prolonged recovery is filled with speed bumps. The rally may fizzle soon, especially after the company reports earnings on July 29.
Higher inflation has elevated living costs, leaving people with less money to spend on discretionary expenses and less interest in paying for marked-up items. Chipotle falls into both of those categories, and its most recent quarterly results showed that the fast-casual restaurant chain was losing momentum.
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Originally published at www.fool.com.