Is Chipotle’s Stock Cheap Now?

Videos
Tracey Ryniec and David Bartosiak, Stock Strategists at Zacks Investment Research, discuss Chipotle Mexican Grill, Inc. (CMG) and its recent stock plunge.

Chipotle has been plagued by an E. coli outbreak in the Northwest and subsequent negative public relations which have hit fourth quarter sales hard. The company recently lowered fourth quarter sales guidance to a range of -8% to -11% after November comps fell 16% due to its closure of 43 locations.

With the recent closure of a restaurant in Boston, analysts are concerned that December may be another bad month for sales.

It also lowered fourth quarter earnings guidance, resulting in analysts dramatically cutting their estimates.

David discusses the stock, which has plunged more than 30% this year. Tracey argues that Chipotle is considered one of the best run restaurant chains.

While the analysts have lowered their price targets, they have mostly maintained their buy ratings. Chipotle is a Zacks Rank #3 (Hold).

Do Tracey and David think this is a buying opportunity in the shares?

Chipotle: http://www.zacks.com/stock/quote/CMG?cid=CS-YOUTUBE-FT-VID

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