"Things have gone from bad to worse for shares of Chipotle Mexican Grill, which somehow found a way to implode further despite going into its quarter in a position of tremendous weakness. Simply put, the bar was low going into the quarter, but Chipotle still managed to stumble. And while I'm sure investors miss ex-CEO Brian Niccol, I still think the fast-casual play represents a great value now that the shares have taken a 52% haircut from peak levels."
"Also, a round of applause to Pershing Square Capital Management's Bill Ackman, who has reduced his stake in Chipotle Mexican Grill steadily in recent quarters. Though time will tell what Ackman does next with the name, I do view the name as a fantastic value, especially for those who are still fans of the chain. Sure, so-called "slop bowls" may be falling out of favor, as consumers question the value they're receiving for food items that certainly aren't the cheapest in the world."
A big week of earnings concluded with the Nasdaq 100 remaining near all-time highs despite investor discomfort. Under the surface, earnings were choppy, with Chipotle Mexican Grill tumbling after a weak quarter and Microsoft disappointing despite strong results. Mega-cap tech largely delivered solid earnings, yet many post-earnings reactions were negative, particularly among the Magnificent Seven excluding Amazon. Chipotle entered the quarter with a low bar but still stumbled, leading to a 52% decline from peak levels and prompting some major investors to reduce stakes. Persisting consumer pressure has shifted some diners to cheaper options, but Chipotle may present long-term value.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]