Is Chipotle a No-Brainer Stock to Buy for 2023?
Chipotle Mexican Grill (NYSE: CMG), down just over 10% in 2022, has fared better than the overall market as the S&P 500 has fallen 18% so far this year. The popular Tex-Mex chain known for its massive burritos continues reporting solid results amid a softening macroeconomic backdrop, which could help explain why the stock is holding up reasonably well.
As we look toward 2023, is this top restaurant stock a no-brainer addition to your portfolio? Let's take a closer look at what investors need to know.
Like many businesses out there, especially retail-based ones, Chipotle hasn't been immune to the surge in inflation and weaker consumer spending. The company has had to deal with rising costs for things like beef, avocados, and packaging materials, and this has pressured margins. However, to Chipotle's credit, management has been able to successfully implement price increases four times over the past 16 or so months, the most recent being in October. And the company's third-quarter operating margin of 15.1% was higher than 12.3% in the year-ago period.
Source Fool.com
