Chipotle’s stock fell following a report of slower earnings growth and declining sales. The company missed revenue estimates and provided a more cautious outlook, attributing the downturn to a perceived ‘slowdown’ in consumer spending. Chipotle’s CEO stated there are no plans to raise prices despite the chain’s struggles amid reduced consumer demand.
This marks the first sales slump for Chipotle since the pandemic, raising concerns about a potential recession. Analysts suggest structuring a bull put spread as earnings approach to manage risk. The situation highlights challenges faced by the third-largest fast-food giant in the U.S. as it navigates shifting consumer behaviors.
— new from Barron’s