Is Chipotle Becoming a Value Stock?
Following a another round of food safety issues, this time an outbreak of norovirus and reports of mice in a restaurant, shares of fast-casual chain Chipotle Mexican Grill (NYSE: CMG) have plunged to a new multiyear low. Even the disastrous outbreaks of 2015, which led to a 20% drop in comparable sales last year, didn't bring the stock down this far. Shares of Chipotle have tumbled 35% over the past few months, and are now down 57% from their all-time high.
"You want to be greedy when others are fearful. You want to be fearful when others are greedy," according to billionaire investor Warren Buffett. When it comes to Chipotle, fear has certainly taken over. This begs the question: Should opportunistic investors buy Chipotle stock at what looks like the worst possible time? After years of being one of the hottest growth stocks, is Chipotle finally a value stock?
Image source: Chipotle.
Source: Fool.com