Analyst downgrades hurt Chipotle stock
Associated Press
Thursday, July 24, 2008
A slew of downgrades led shares of Chipotle Mexican Grill Inc. to drop Thursday after the burrito chain reported its second-quarter profit rose 23 percent but missed Wall Street's expectations by a penny.
Shares fell $14.06, or 16.8 percent, to $69.74 in morning trading. Earlier in the morning, the stock reached $68.40, its lowest point in more than a year. Shares have traded as high as $155.49 in the past 52 weeks.
After the market closed Wednesday, Chipotle said its profit climbed as sales rose at both new and established restaurants. Higher prices and more customers contributed to the sales boost.
But the company's results missed analysts' expectations by 1 cent, according to a poll by Thomson Financial.
Chipotle also said it expects its same-store sales, or sales at stores open at least a year, to rise in the midsingle digits for the year. In the second quarter, same-store sales grew 7.1 percent.
Despite the profit rise and strong sales, JPMorgan, RBC Capital Markets, Buckingham Research and Jefferies & Co. analysts cut their ratings on the stock.
Post your comment
Registration is required. Click here to create your free user account, or login below.
Comments are the sole responsibility of the person posting them. You agree not to post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy. Violators may be banned. Click here for our full user agreement.