Investing

Chipotle Tumbles Following Revenue Miss

Shares of Chipotle Mexican Grill (NYSE: CMG) have plunged more than 18% in premarket trading Friday, following Thursday’s second-quarter report that indicated a slowdown in customer traffic growth.

The fast-casual restaurant operator reported that net income rose to $81.7 million, or $2.56 per share, compared with $50.7 million, or $1.59 per share, in the same quarter a year earlier. And revenue rose 20.9% year-over-year to $690.9 million. While the bottom line beat consensus estimates, the top line fell short of expectations.

Slower U.S. consumer spending have hurt the company’s sales as the year proceeds. And the severe drought in the United States likely will increase food costs later this year and next.

This morning, UBS lowered its price target on Chipotle to $355 from $443 following Q2 results, citing expectations for weaker same-store sales growth and rising food costs.

Chipotle was the best-performing restaurant stock in the Standard & Poor’s 500 Index last year, a standard it may be unable to live up to this year. It closed Thursday at $403.86. Year to date, the stock is more than 18% higher — so far.

The #1 Thing to Do Before You Claim Social Security (Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.