Chipotle recommendation

It is a restaurant chain in the fast casual sector currently found in locations in the United States, Canada and Europe. The food it shares is Mexican cuisine that includes tacos and burritos.

Perhaps there is a lesson to pay attention to basics in the emerging situation at Chipotle Mexican Grill, Inc. This post about Chipotle will come in three sections.

Sales grew at This growth was fueled by a growth in the number of stores of Chipotle was opening stores at the rate of more than three every week during the period. This meant that same-store sales for stores open more than a year were rising at even more rapid rates. The train was running at a very rapid pace and hoping for no sharp curves ahead.

Unfortunately, we never know about most of the the curves in life until they happen. When I talk to business owners, I talk about addressing known risks while they are addressable.

These risks include concentrations of all types. They also include regulatory change, potential industry and competitive threats. And, for restaurants and other food-related companies, risks also include the danger of E. With risky and rapid growth like described above and shown in the table below it should have been at least that high.

This is in line with the growth rate of The chart is shown below for reference. That is in line with pricing a couple weeks before at September 30, The stock has experienced an almost steady decline since October 13th following a series of announcements about new E.

Recent investors have to be hurting, and any short sellers should have made out like bandits. The problems erupted while Chipotle was growing very rapidly. Management may not have been paying attention to quality control as much as was needed.

There were no sell recommendations. Arands notes that now, there are 15 buy recommendations and 17 holds. There is only one sell recommendation at this time.

Is Chipotle still a darling? Chipotle was an expensive stock. In the past, as a rough rule of thumb, U. Genuine growth stocks can justify higher ratings, but it is hard to see why a simple burrito chain with brick-and-mortar economics would merit so high a rating.

You have to run really hard to keep up with a rating of 40 times earnings. Until the company receives a clean bill of health from the CDC, it will be in limbo, and sales will be under pressure from lots of negative press and social media coverage.

Declining same store sales, unless reversed quickly, will lower sales and earnings potentially. It is not known by me at least what impact this crisis will have on new store growth. Certainly there are lots of stores in the pipeline that are coming on stream in the midst of all of the bad news.

Expected Growth, Risk and Value It goes without saying that Chipotle has been recognized as a riskier stock after the E. This is simply not realistic.Chipotle develops and operates fast-casual Mexican food restaurants.

Its menu is focused on burritos, tacos, burrito bowls, and salads, made with fresh ingredients. Its menu is focused on burritos, tacos, burrito bowls, and salads, made with fresh ingredients.

Chipotle Mexican Grill, Inc. (NYSE:CMG) has been given a consensus recommendation of “Hold” by the forty ratings firms that are covering the company, Marketbeat reports. Nine investment analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and fifteen have assigned a buy rating to the company.

The average 1 [ ]. Chipotle Mexican Grill, this week reported tepid comparable-sales growth for the third quarter, despite the return of carnitas at many stores after a shortage.

And the burrito chain said things. At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life. Chipotle Mexican Grill, Inc. Chipotle’s proxy materials for its upcoming annual meeting of security holders.

Your letter indicates that the proponent has withdrawn the proposal and that Chipotle therefore withdraws its December 15, request for a no-action letter from the Division.

Chipotle Mexican Grill, Inc.

develops and operates fast casual and fresh Mexican food restaurants. Its restaurants primarily offer burritos, tacos, burrito bowls, and salads.