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Chipotle (CMG) crumbles premarket after a [[weak earnings]] report yesterday that reflected a...

Chipotle (CMG) crumbles premarket after a [[weak earnings]] report yesterday that reflected a slowdown in customer traffic growth. CFO Jack Hartung also warned extreme weather may boost food costs this year and next. Shares -16.8%. (conference call transcript)

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Comments (8)
  • sheeple2012
    , contributor
    Comments (203) | Send Message
    Another Cramer fave!
    20 Jul 2012, 07:59 AM Reply Like
  • chopchop0
    , contributor
    Comments (3793) | Send Message
    Yup. He was bullish as recently as a month ago LOL



    Cant wait to see him explain yet another momo stock gone bad
    20 Jul 2012, 09:17 AM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
    the economic reality hits!
    20 Jul 2012, 08:07 AM Reply Like
  • mahmmq5
    , contributor
    Comments (4) | Send Message
    Yeah that's true. I remember him raving about them last summer.
    20 Jul 2012, 08:17 AM Reply Like
  • Sebanightwish
    , contributor
    Comments (1063) | Send Message
    This is what happens when stocks reach a ridiculous valuation. CMG is a case, extremely overvalued, now suffer for it.
    20 Jul 2012, 08:34 AM Reply Like
  • pat45
    , contributor
    Comments (380) | Send Message
    CMG will watch for dust to settle. Never owned stock-been too expensive-but will be good after this drop. I love their food and food prices are cheap!
    20 Jul 2012, 08:46 AM Reply Like
  • rentzswamp11
    , contributor
    Comments (61) | Send Message
    The " told you so's" bring no value. The "pros"have been saying overvalued for last 250 points. What good is that??
    20 Jul 2012, 08:52 AM Reply Like
  • LDA
    , contributor
    Comments (2) | Send Message
    Chipotle's restaurant expansion has gone from an exclusive focus on securing "Home Run" locations to one which now includes a growing number of "B" locations - those with annual revenues of less than $2,000,000. Why? I believe the answer is because Chipotle is paying too much attention to protecting market share instead of focusing exclusively on securing the best, most productive real estate.
    A second negative I've noticed is that there is an inconsistency in portion size. Some Chipotle locations don't skimp on meat while others do. This needs to be corrected if customer retention remains a high priority.
    Because Chipotle's business model is so simple, an increasing number of copy cat competitors is emerging. As long as Chipotle's food remains superior and customer loyalty remains high there is no doubt in my mind that they will continue to be the market leader. But, the days of being the only quick service/fast casual restaurant serving Mexican food is over.
    Because I am a customer, I finally decided to buy the stock at a valuation a little over $400 per share. I kept it for several months. After doing more field work/analysis I concluded that the stock was overpriced. Luckily I sold my shares and made a little something, but nowhere near as much as I would have if my timing were better.
    I still think there's money to be made in Chipotle. This pullback should touch off a further slide in pricing - something which will definitely create a buying opportunity for growth oriented investors.
    20 Jul 2012, 09:21 AM Reply Like
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