Chipotle Mexican Grill's Next Earnings Report on July 29 Could Send the Stock Sliding. Here's Why.
Can Chipotle return to meaningful growth?
Overview
Chipotle Mexican Grill (NYSE: CMG) has been a top-performing stock throughout its history, but more recently, the company has disappointed investors.
The stock is down more than 50% from its peak a few years ago, as it lost star CEO Brian Niccol, same-store sales growth slowed, and its premium valuation compressed as investors dialed back estimates for its long-term growth.
Details
Chipotle is down 10% year-to-date, as its results have underwhelmed. In the first quarter, comparable sales rose 0.5%. In comparison, margins fell sharply with its operating margin declining from 16.7% to 12.9% due in part to its biennial All Managers Conference and higher labor costs from labor inflation.
Source
Originally published at www.fool.com.