Identify yourselves.
Admittedly, my son still eats there, despite my ominous warnings.
The story of Chipotle should be studied in every business school for centuries, depicting the rise and fall of a brand. Quite literally, they’ve gone from hero to zero in two years, all the while Bill ‘Montauk’ Ackman remained steadfast inside the investor ranks. You cannot make up a better tragedy.
Deutsche Bank reduced numbers and their price target for the faux Mexican food purveyor.
Via Benzinga:
Looking forward, the analyst has little confidence in Chipotle to demonstrate strength in same-store sales. Accordingly, Levy’s 2017 earnings per share estimate is lowered from $7.70 per share to $6.80 per share and 2018’s outlook was also lowered from $10.60 per share to $9.90 per share.
Chipotle’s stock has traded at an average of around 35x its forward earnings, but given the uncertainty over the brand moving forward, a 25x multiple on 2018’s earnings is more appropriate.
“If fundamentals improve, the multiple could rebound,” the report also noted. However, if there is a continued deterioration in fundamentals, despite easier compares creating a backdrop where the company could post above average growth, we believe the more muted multiple is appropriate. Should the hyper-growth not materialize (or rate of growth remain more modest), we believe there could be some additional risk to the multiple.”
Amongst all larger cap restaurant stocks, CMG is the only one with negative returns over the past two years — down more than 57%.
Just last year Deutsche Bank was considered the most important net contributor to systemic risks, similar to Bear/Lehman. And now look it them go in 2017!
Too salty, also too diseasy
My family loves it (including 2 kids 12-15) and we’ve never had an issue eating there. Ever. Preferred over Shake Shack.
SHAME ON YOU
Womdering if this stock sh#ts the bed if that will be the end of Montauk Bill as a money manager.
Burrito bowls baby!