Everyone needs to eat, but not everyone wants to cook their own food. Even though people can save money by cooking instead of going out to eat, many people regularly visit restaurants.
Consumer-centric companies are generally volatile buys for the long term. While consumer spending is a big focus in the U.S. because it is a great macroeconomic indicator, several factors impact it.
Chipotle Mexican Grill just completed a huge 50-for-1 stock split. Wall Street knows that stock splits aren't meaningful from a business perspective, but investors like them anyway.
Chipotle (CMG) benefits from robust same-store sales growth, digitalization efforts, expansion initiatives and effective advertising strategies.
Chipotle is reliable for growth across operating metrics. It sees plenty of opportunities for new store openings.
Chipotle recently completed a massive 50-for-1 stock split. Stocks often gain ground around a split as it signals business success.
Chipotle split its stock and outperformed the S&P 500 after the split was announced. Stock splits don't increase the value of a business, which means it's not an important thing to focus on.
Two of Ackman's biggest winners are up more than 30% year to date. Another has delivered a gain of 18%.
Savvy investors must own safe haven stocks that provide stability and growth potential in an unstable economic environment. Recognizing which companies can withstand market declines becomes critical as investors brace for possible adjustments.
Chipotle's offerings continue to draw customers from near and far. A significant expansion opportunity still remains for the restaurant chain.
Shares of this leading fast-casual chain have soared in recent years. The stock's nosebleed valuation should worry investors.
Chipotle just completed one of the biggest stock splits in exchange history. The move lowers the price of each individual share, making the stock more accessible for a wider range of investors.