
Chipotle Stock Plunges ~25%âŊInâŊOneâŊMonthâIs the Freefall Over?
âĒBy ADMIN
Related Stocks:CMG
Shares of Chipotle Mexican Grill (NYSE:âŊCMG) dropped roughly 25% in the past month amid mounting worries over consumer spending and lowerâthanâexpected sales growth. According to recent financial commentary, the chain reported sameâstore sales growth of only 0.3% in Q3, trailing analyst expectations of ~1.36%.
A key headwind: younger customers aged 25â35 and households earning under $100âŊkâwho together represent a major portion of Chipotleâs businessâare scaling back on dining out given rising studentâloan repayments, stagnant wages, and inflation pressures.
In response, management trimmed its fullâyear sameâstore sales outlook to a low singleâdigit decline, signalling caution that the worst may still be ahead.
That said, some analysts now view the plunge as a potential buying opportunityâprovided the company can shore up traffic and get its key demographic back.
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