Meanwhile,
Chipotle: does wind turn?:
The chain of restaurants specializing in burritos fell heavily on the stock market last week after lowering its annual objectives. Nevertheless, This year could mark a turning point in the Success Story Boursière that Chipotle has offered its shareholders for. Therefore, many years. Similarly, Visibility on the title has probably never been so weak since 2015. Similarly,
The group, whose activity is widely concentrated in the United States, has a long history of outperformance in the rest of the fast food market. Moreover, In recent years. Furthermore, Chipotle has chained remarkable operational and financial performance to the point of being gratified by multiple valuation in the long term, greater than 45 times the profits. By way of comparison, the McDonald’s PER is around 25 times and that of Domino’s Pizza is around 27 times.
In ten years, turnover has chipotle: does wind turn? more than doubled. Admittedly, other actors such as restaurant Brands International (Burger King, Popeyes, etc.) or Domino’s Pizza also displayed solid growth. But no giant in the sector has been able to improve its efficiency with so much consistency. The margins have improved significantly. they exceed their 2015 level today, the year when Chipotle had been struck by a serious sanitary scandal (E. coli, Norovirus, Salmonelle) having touched hundreds of customers.
These latter quarters, however, the idyllic scenario darkened until led to the lowering of forecasts last week. The group is now counting on sales with stable comparable stores, a first since 2015. Caution is less linked to strategic errors than a binding economic environment. Chipotle had to compose with the outbreak of logistics costs. the impact of customs duties decided by Donald Trump, while the brand imports Mexico about half of his lawyers, as well as chipotle: does wind turn? tomatoes, lemons and peppers. To diversify her supplies, she turned to Colombia, Peru and the Dominican Republic.
In response, Chipotle has noted its prices several times. But, at the same time, customers have denounced a degradation of the service and a less attractive quality/price ratio. With a purchasing power always under pressure, consumers, especially low -income households, favor cooking at home more. To stimulate attendance, the chain has strengthened its marketing presence on social networks, multiplied promotions and launched some new features. However, growth 2025 should now rest almost exclusively on the opening of new restaurants.
Chipotle sails in a complicated environment. Visibility has rarely been so low in recent years and the group has lost market share in the spring. The valuation logically fell below 5 years. It will take good news to restore the coat of arms.
Chipotle: does wind turn?
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