After being a strong performer the past few years, shares of Chipotle Mexican Grill (CMG 0.67%) have gone from being hot to mild over the past year. The stock is down more than 12% year to date and is about break-even over the past year, as of this writing.
Restaurant company Chipotle Mexican Grill CMG could be negatively impacted by pending tariffs on Mexico, which could increase the cost of avocados and other food items.
"It is our intent as we sit here today to absorb those costs," Chipotle CEO Scott Boatwright told NBC News.
Chipotle Mexican Grill's stock rose Monday after the restaurant chain picked up a fresh upgrade from Morgan Stanley and the company's chief executive reiterated comments about managing the impact of trade tariffs on its avocados and other costs.
Chipotle's top boss said that if tariffs go into effect, the company will absorb them. However, that could change if they become a "significant headwind.
Chipotle Mexican Grill Is Even More Compelling At This Dip, Reiterate Buy
Chipotle Mexican Grill (CMG 2.33%) has been an unbelievable market-beater since its IPO in 2006.
Chipotle's stock is now a 'Buy' due to attractive valuation, strong fundamentals, and significant growth potential despite the recent CEO transition. Q4-24 results showed impressive revenue growth, strong same-store sales, and continued unit expansion, maintaining high restaurant-level profitability. Market expectations for 2025 are low, setting up the potential for multiple 'Beat & Raises'.
Zacks.com users have recently been watching Chipotle (CMG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
CMG stock tumbles post fourth-quarter 2024 earnings. A tepid view of margins due to regulatory alterations is concerning.
Chipotle's ($CMG) stock is up 70% in two years, making it the third-largest U.S. restaurant chain by market value, nearing $80 billion. In 2024, revenue rose 14.6% to $11.3 billion, with slightly improved operating margins.
Chipotle currently has more than 3,700 locations across seven countries.