Many investors are thinking about the stock split but others know that this is an impressive profitable growth story.Shares of burrito-centric restaurant chain Chipotle Mexican Grill (CMG 0.21%) jumped 37% in the first half of 2024, according to data provided by S&P Global Market Intelligence. The chart shows a steady increase throughout the six-month span, accentuated with two bigger single-day moves. Those larger jumps happened each time the company reported quarterly financial results.On Feb. 6, Chipotle ...

Big-name stocks that have split their shares in recent years have generally done fairly well afterward.A stock split doesn't fundamentally change anything about a business. Its financials remain the same, the stock's earnings multiples are the same, and it's just as good a buy as it was before the split. But that doesn't mean stock splits don't have an effect on a stock's performance. They are, after all, a positive sign that a business is doing well and that the share price is high enough that deploying a ...

Core Viewpoint - Chipotle Mexican Grill's stock is experiencing a significant decline, nearing a bear market after dropping over 17% from its peak this year, reaching its lowest point of the year [1]. Group 1: Industry Trends - Chipotle's stock decline is part of a broader trend affecting restaurant stocks, with notable drops in McDonald's, Starbucks, CAVA Group (down nearly 9%), Jack In The Box (from $84.90 to $48), and Yum Brands (down over 11%) [2]. - The restaurant industry is facing economic concerns, with the unemployment rate rising to 4.1% and wage growth stagnating. Analysts predict slower growth in the industry, with casual dining comparable sales dropping by 6% in the most recent quarter [2]. Group 2: Valuation Concerns - Chipotle's stock price is under pressure due to high valuation concerns, with a forward P/E ratio of 53.6 compared to the sector median of 15, and an EV to EBITDA multiple of 36 against a median of 9.40 [3]. - Despite a forward revenue growth of 14% and forward EBITDA growth of 23.3%, these valuation metrics are considered high, especially when compared to Nvidia's forward P/E ratio of 50 with over 80% revenue growth [3]. Group 3: Earnings and Executive Changes - The stock has declined as traders prepare for upcoming earnings on July 24th, with expected revenue of $2.93 billion, a 16% increase from the same period in 2023, and a projected annual revenue rise of 15.1% to $11.3 billion [4]. - Concerns about potential weak financial results from several restaurant chains have been raised, with analysts indicating risks of missing same-store sales forecasts for Q2 [4]. - The resignation of CFO Jack Hartung, effective in 2025, has also contributed to the stock's decline, although the CEO expressed confidence in the succession plan with Adam Rymer taking over [4]. Group 4: Technical Analysis - The stock's decline is also attributed to technical factors, forming a bearish evening star pattern on June 18th and dropping below the critical support level of $60.7 [5]. - The stock has moved below the 23.6% Fibonacci Retracement level, with downward signals from the Relative Strength Index (RSI) and other oscillators, suggesting a potential continued decline towards a 50% retracement point at $52 [5].

However many shares it was, it recently grew 49-fold thanks to a stock split.Based on sales, it's clear plenty of people enjoyed a burrito, salad, or quesadilla at Chipotle Mexican Grill (CMG -3.41%) this year. Billionaire hedge fund manager Bill Ackman is also enjoying the restaurant chain, but not necessarily for its food. It's been a great investment for Ackman's Pershing Square Capital Management and now stands as its top holding.Ackman can buy a lot of tacosPershing Square's latest 13F regulatory filin ...

Key TakeawaysChipotle Mexican Grill shares dropped more than 5% on Monday as excitement over the fast-casual chain's recent 50-for-1 stock split wanes.Chipotle shares have confirmed a bull trap, a chart pattern that "traps" investors who initiated long positions on the breakout signal and subsequently generates losses as the price reverses. The Chipotle share price may find support at key chart levels including $56, $50, $47, and $43.When monitoring the support levels outlined above, investors should seek c ...

Key TakeawaysChipotle Mexican Grill shares continued to fall Monday after setting a record high when shareholders approved a 50-to-1 stock split in June.The Mexican fast-food chain has been accused by some customers of reducing the size of its burrito bowls, which CEO Brian Niccol denies.Shares of Chipotle have lost about 13% since reaching an all-time high last month, but still have added almost a third of their value this year. Chipotle Mexican Grill (CMG) was one of the worst-performing stocks in the S&P ...

Investors looking for a long-term compounder should consider Chipotle Mexican Grill (NYSE:CMG). After the company’s recent 50-for-1 stock split Chipotle stock looks like a buy.The restaurant chain that specializes in Mexican cuisine and known for fresh ingredients just executed the first stock split in its history, and the move has made the shares the most affordable they’ve been in more than a decade. Before the split, one share of CMG stock cost more than $3,200. Now, investors can buy shares for $61 each ...

The restaurant giant's business strategy is delivering strong revenue growth.Restaurant chain Chipotle Mexican Grill (CMG 1.90%) capped an amazing run up in its share price this year with a 50-for-1 stock split in June. It was one of the largest stock splits in the history of the New York Stock Exchange.Explaining why the company did it, CFO Jack Hartung said, "We believe the stock split will make our stock more accessible to our employees as well as a broader range of investors."With its historic stock spl ...

The reduction in consumer spending and increase in prices has shaken most of the consumer brands in the U.S. These trends have left most average Americans spending more on necessities such as groceries. Most non-necessary consumer brands have been forced to bear the brunt of the slowing economy. However, these three recession-proof consumer brands are proving resilient in the face of the biting economy. Crushing market estimates, they strongly indicate improved earnings. Whether through strategic business d ...

Chipotle is still worth buying, but investors should steer clear of Sony.Many retail investors might shy away from higher-priced stocks that cost hundreds or thousands of dollars per share. Even though most brokerages now allow investors to buy fractional shares of those stocks, some investors might still prefer to buy round lots (100 shares) at lower prices because they're easier to keep track of.To reach those smaller investors, a lot of companies split their stocks to make them easier to trade. These sto ...