Chipotle Mexican Grill, Inc. (NYSE: CMG) has been one of the top restaurant stocks in the last ten years, but it has experienced more ups and downs recently. After reaching a record high last summer, the stock has struggled to rise further and is currently 20% lower than its peak in December.
Chipotle (CMG) shared its earnings report 30 days ago. What can we expect for the stock moving forward?
U.S. stock futures dropped on Tuesday after President Donald Trump's 25% tariffs on Canada, Mexico, and China were implemented, leading to some countries responding with their own measures.
Chipotle Mexican Grill (CMG -2.23%) is known for its delicious food, such as burritos and quesadillas, but it is also seen as a promising investment opportunity. This view is supported by a recent analysis from a well-known investment bank.
Chipotle Mexican Grill (CMG 0.67%) has seen a decline in its stock performance after several strong years. Currently, the stock has dropped over 12% since the beginning of the year and is roughly at the same level as it was a year ago.
Chipotle Mexican Grill CMG might face challenges due to possible tariffs on Mexico, which could raise the prices of avocados and other food products. This could affect the company's overall costs.
Chipotle CEO Scott Boatwright mentioned to NBC News that they plan to cover those costs as they discuss it today.
Chipotle Mexican Grill's stock increased on Monday after receiving a new upgrade from Morgan Stanley. The CEO of the company also emphasized how they are handling the effects of trade tariffs on their avocados and other expenses.
The CEO of Chipotle mentioned that the company will take on the costs of tariffs if they are implemented. However, this decision might change if the tariffs become a major challenge for the business.
Chipotle Mexican Grill (CMG 2.33%) has performed exceptionally well in the market since it went public in 2006.