Chipotle Is Struggling With Inflation. Is the Stock Still a Buy?
With inflation at multi-decade highs, many companies are grappling with rising input costs affecting their bottom line. This is especially true for companies with high food and energy costs and large employee counts.
Fast-casual Mexican restaurant chain Chipotle (NYSE: CMG) fits this description perfectly. With almost 100,000 employees seeing their wages rise and high food costs (avocados are not cheap!), the company's store-level margins are moving in the wrong direction, making investors nervous about its prospects in the coming quarters.
Chipotle is clearly struggling with inflation right now, and the shares are down 27% year to date. So is the stock still a buy for long-term investors?
Source Fool.com
