CMG - After Its Historic Stock Split Should You Buy Chipotle Stock for the Second Half of 2024?
2024-07-13 15:05:00 ET
Perhaps no restaurant has made a stronger comeback than Chipotle (NYSE: CMG) over the last decade. After dealing with a huge food safety crisis in 2015, the fast-casual leader is now stronger than ever as it closes in on 3,500 stores with impressive unit volumes. It brought on a new CEO, Brian Niccol, in 2018 to steer the business, which has paid off handsomely.
Over the last 10 years, Chipotle has posted a 382% total return, and in late June, the company executed a historic 50-to-1 stock split. What does the stock have in store for the rest of 2024? Let's take a look and find out.
The Chipotle model is simple: Open more stores, increase customer traffic, and increase menu prices. This all leads to revenue and profit growth. Last quarter, Chipotle's revenue grew an impressive 14% year over year. This was driven by new store openings but also by 7% same-store sales growth, a solid number for any restaurant concept.
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After Its Historic Stock Split, Should You Buy Chipotle Stock for the Second Half of 2024?