Why Chipotle Is Plummeting Despite Crushing Earnings
Skeptics of Chipotle Mexican Grill (NYSE: CMG) must admit that the company has posted a solid comeback under new CEO Brian Niccol, who took the reins from founder Steve Ells in early 2018. By focusing on digital ordering, a new loyalty program, and menu innovation, Niccol has rejuvenated Chipotle's same-store sales, which had plunged after several food safety scandals beginning in late 2015, and hadn't staged much of a comeback until Niccol's arrival.
In its recent third-quarter earnings release, this trend continued, with comparable sales accelerating to 11%, leading to healthy beats on both the top and bottom lines versus analyst expectations.
Yet as of this writing, Chipotle's stock is down nearly 10% from its levels before the recent earnings report. So why is the market giving the stock such short shrift?
Source Fool.com
