Shares of Chipotle (NYSE: CMG) have had a rocky year in 2016. Last quarter’s weak earnings report showed that the company is still suffering in the wake of the E. coli and other health-related outbreaks. These health scares have led to a fall in traffic to its stores and Chipotle can’t quite figure how to get customers excited again, much less investors. #-ad_banner-#Same-store sales (those opened for longer than a year) were down a whopping 29% in Q1. Second quarter same-store sales will likely be down 20%, which is tracking below Wall Street expectations. Yet, with the stock down 28%… Read More
Shares of Chipotle (NYSE: CMG) have had a rocky year in 2016. Last quarter’s weak earnings report showed that the company is still suffering in the wake of the E. coli and other health-related outbreaks. These health scares have led to a fall in traffic to its stores and Chipotle can’t quite figure how to get customers excited again, much less investors. #-ad_banner-#Same-store sales (those opened for longer than a year) were down a whopping 29% in Q1. Second quarter same-store sales will likely be down 20%, which is tracking below Wall Street expectations. Yet, with the stock down 28% over the past 12 months, it’s now convincing value investors like myself to take a closer look. But I’m finding that Chipotle might still have a lot of issues with no quick or easy fix. But Is There A Silver Lining? Now, there could be an opportunity for Chipotle to rekindle eaters’ interest. This includes rolling out new menu items and potentially breaking into the heated breakfast market. The company has already announced that it plans to start offering chorizo as a protein option in its restaurants. Then there’s the breakfast opportunity. Breakfast has proven to be big business… Read More