Is Now the Right Time to Buy Chipotle Stock?
Popular Tex-Mex chain Chipotle Mexican Grill (NYSE: CMG) just reported a strong quarter, with revenue and diluted earnings per share up 13.7% and 28.1%, respectively, compared to the prior-year period. Sales slightly missed Wall Street consensus estimates, while the bottom line easily beat analyst projections. Nonetheless, investors haven't shown enthusiasm about the results.
The stock is down more than 10% since the announcement -- and 21% since the start of 2022. Does this mean that investors should take a bite out of this top restaurant stock? Let's take a closer look to find the answer.
In the third quarter (ended Sept. 30), Chipotle was able to boost same-store sales 7.6% on a year-over-year basis, a clear indicator that the company's restaurants keep boosting their productivity. Transactions were down 1%, but management has been able to successfully implement menu price increases with "minimal resistance" from customers, according to CEO Brian Niccol.
Source Fool.com
