Investors Favor Chipotle’s Burritos Over Its Stock Amid Growth Concerns
Chipotle's stock continues to face headwinds as growth momentum falters. Revenue increased just 3% year-over-year in Q2, while diluted earnings per share fell by the same margin. The 4% decline in same-store sales—a key metric for restaurant chains—signals weakening demand at established locations.
Transaction volume dropped 4.9%, barely offset by a 0.9% price increase. This erosion of customer traffic contradicts the bullish narrative around Chipotle's expansion strategy. New store openings are propping up top-line growth, but decaying fundamentals at existing locations paint a concerning picture for long-term investors.