2 Reasons to Buy Chipotle Stock and 1 Reason to Sell
With the stock market having a rough go in 2022, investors might be hesitant to put money to work right now. But this is the wrong mentality as there are some fine companies that deserve a closer look. Chipotle Mexican Grill (NYSE: CMG) fits the bill as a business that continues to perform well despite broad macroeconomic weakness.
But investors need to understand both the positive and negative arguments before even thinking about investing in the company. Here are two reasons to buy Chipotle stock and one reason to sell.
During the five-year stretch between 2016 and 2021, Chipotle increased revenue at a compound annual growth rate (CAGR) of 14% with diluted earnings per share rising at a 97% rate. And same-store sales generated healthy gains as well, even coming in positive in pandemic-filled 2020. So it's no surprise that the stock has produced a stellar return of 402% over the past five years.
Source Fool.com
