Chipotle Stock: Buy the Dip?

Chipotle Mexican Grill (NYSE: CMG), the renowned fast-casual restaurant chain, has seen its stock take a hit since it released its second-quarter 2023 earnings late last month. The stock has pulled back nearly 12% since the report. Is this a buying opportunity, or should investors hope for an even better price before taking the plunge and buying shares of this enduring company?

Interestingly, the fast-casual burrito chain's second-quarter earnings actually surpassed analysts' consensus forecast for the quarter. So what is going on with the stock? Let's take a look at the earnings report and, more importantly, assess whether or not shares are a buy today now that the stock has come down meaningfully.

Chipotle's adjusted earnings per share for Q2 impressively rose 36% year over year to $12.65. This beat analysts' average estimate for $12.31. This positive performance is attributed to various factors, including improved restaurant-level operating margin expansion, menu innovation, price increases, and good execution on the company's digital strategies.

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Source Fool.com