Chipotle Is Crushing It Even With Decades-High Inflation. But Is the Stock a Buy?
The biggest change to financial markets in 2022 has been the return of inflation across the globe. The Consumer Price Index is up 8.2% over the past 12 months in the United States. That's one of the highest readings in decades and has major implications across the economy.
For businesses with major labor, commodity, and transportation costs, inflation can wreak havoc on profit margins when input costs rise faster than revenue. Restaurants are good examples as they have to deal with complex supply chains, food prices, and a significant labor force.
Most restaurants have struggled in 2022. But not Chipotle (NYSE: CMG). The Mexican fast-casual restaurant chain continues to weather inflation through price increases with minimal impacts on its business. But does that make the stock a buy today?
Source Fool.com
