The burrito restaurant chain Chipotle Mexican Grill, Inc. has struggled from tainted food illnesses since the stock set its all-time intraday high of $758.61 in August 2015. Periodic issues pushed the stock to its 52-week low of $263.00 on Nov. 13, 2017. This 65% bear market slump could be tough to shallow if earnings disappoint when the company reports results after the close today, Feb. 6.
The stock closed Monday at $300.30, up 3.9% year to date and up 14.2% since setting its 52-week low on Nov. 13. The stock is in bear market territory at 39.8% below its 52-week high of $499.00 set on May 16, 2017. Analysts expect Chipotle to post earnings per share of $1.32 to $1.34 in its upcoming report. The fast-casual Mexican Grill needs a strong quarter to get back on consumers’ menus. UBS expects the stock to stay behind the woodshed, downgrading Chipotle shares last week to a sell rating and forecasting weak same-store sales moving forward. (See also: Chipotle: Rise and Fall of a Wall Street Darling.)
Chipotle stock is not cheap, trading under a “death cross” with an elevated P/E ratio of 60.40 and a negative weekly chart. …read more
Read more here: Chipotle Needs a Fresh Earnings Menu to Recover