Must all good things come to an end?
Chipotle has been the longtime darling of the Fast Casual world. It's the poster child, the perfect model of what works in the industry, however Barron's, America's premier financial magazine, reported that Chipotle is "losing its spice." The company stock could lose another 15 to 20% as new obstacles to its growth are arising.
The restaurant enjoyed multiple years of solid, double-digit revenue growth, with a stock price to match. Shares soared to $727 in February this year, an astonishing 1,516% increase since Chipotle's IPO in 2006. However, investors are steadily unlinking themselves from the chain. The company's stock has fallen 16% to $609 since February.
Perhaps loyal investors are becoming unsettled by the number of challenges Chipotle is enduring. From pork shortages, rising labor and beef costs, and an unexpected backlash following the company's decision to remove GMOs from its menu, this is going to be a bumpy road -- hopefully the path Chipotle goes on will lead to better destinations. Read More