Shares of Chipotle Mexican Grill Inc. fell 2.5% Wednesday, as analysts took a cautious view of the stock ahead of third-quarter earnings due next week. Wedbush analysts said they are expecting same-restaurant sales growth to fall below consensus of 2.2%, based on early October checks. “While we noted a benefit from the recent introduction of queso, we estimate the trend line was only up in the low-single digit range, and believe prior to the introduction was likely running in negative territory,” they wrote in a note. “Should transaction trends remain pressured, we believe management may elect to forego the price increase we currently incorporate in our model in Q4.” Bank of America downgraded the stock to underperform from neutral, according to Barron’s. Chipotle shares are down 15% in 2017, while the S&P 500 has gained 14.5% and the Dow Jones Industrial Average has gained 17%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News