A stock split doesn't always lead to a big rally. Chipotle Mexican Grill (NYSE: CMG) recently deployed a massive 50-for-1 stock split, but its shares have been going in the opposite direction of late. On June 27, the stock began trading on a post-split basis at just over $62. But last week, its shares dipped below $50.

Since then, the company has reported its latest earnings numbers, which remained strong. But despite this, the stock has been struggling. Is this just part of the market's recent pullback? Could this be a great time to buy the stock, or is there more trouble ahead for Chipotle?

Chipotle's business has performed incredibly well, despite inflation. The company reported earnings in July, and comparable-sales growth was impressive, coming in at 11% for the period ending June 30. It was especially impressive that transactions were up by 8%. Greater traffic drove the strong numbers, as opposed to price increases, as has been the case for many other restaurant chains. The company has used price hikes to offset rising costs, and its margins have expanded as a result.

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Source Fool.com