Is Management Really to Blame for Chipotle's Woes?
Chipotle (NYSE: CMG) continues to suffer from fallout from its 2015 E. coli scandal. While sales have somewhat rebounded -- or at least have been moving in the right direction -- the chain's stock price remains well below its pre-scandal heights.
Shares in the Mexican eatery closed at $274.52 on November 27, down from $754.03 on August 17, 2015, in the period where the first reports of E. coli had come out, but the impact had not yet been felt by the company. That's a stunning drop -- and the chain's share price continues to move in the wrong direction despite the company reversing its sales declines.
In the most recent quarter, for example, revenue increased 8.8% to $1.13 billion, and comparable restaurant sales increased by 1%. Chipotle also saw its earnings per share increase to $0.69, up from $0.27 in the same period a year ago. Despite that, investors remain unconvinced, and the chain's share price has continued to decline.
Source: Fool.com
Chipotle Mexican Grill Inc. Stock
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