MCD - Chipotle: A Bullish Stock Split But Shares Near Fair Value
2024-04-05 10:44:06 ET
Summary
- Stock splits are historically bullish, with an average 12-month forward return of 25.4% after the announcement.
- Chipotle Mexican Grill saw a 5% increase in its stock price after announcing a 50:1 stock split, but shares have taken a small breather ahead of Q1 results.
- CMG's management team remains optimistic about future growth, but labor costs and competition are challenges the firm must navigate.
- I highlight key price levels to monitor as its earnings date approaches.
Stock splits shouldn’t matter. That's what the accounting textbook says and many finance lectures assert. Of course, we do not invest in an academically driven world. It turns out that traditional stock splits are quite bullish. ...
Chipotle: A Bullish Stock Split, But Shares Near Fair Value