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Does Chipotle's disastrous earnings report spell doom for its stock?

Oct 27, 2017, 16:31 IST

Business Insider

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Business Insider CEO Henry Blodget and executive editor Sara Silverstein look at Chipotle, which is down more than 60% from its peak just two years ago. Silverstein recaps the company's disappointing third-quarter earnings report, which saw it miss on sales, profit and cut its forward guidance. She mentions that the big debate amongst investors revolves around Chipotle's new queso, and notes that one Wall Street analyst cut his price target after seeing the negative social media reaction to the queso offering.

Blodget points out that BAML downgraded the company's stock because it pays employees too much, which he thinks is a good problem to have, while also professing his continued affection for their food. He doesn't think it's the end of the world if Chipotle doesn't trade at the valuation it once did, and notes that it's followed the trend of many momentum stocks before it.

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