This is better than the Kardashians.
Reminding us of our mortality.
Psssst....pass it on.
Wage cost squeeze and food input cost squeeze. Whae the burrito price crosses $10 (steak variety almost there), how many customers will they lose? I would guess quite a few. Growth story is winding down, yet stock is still way above 30 PE, more than 5 times growth rate. $400-450 seems fair value.
Not good. The so called "death cross" will probably occur sometime next week, no matter what the stock does.
I passed one yesterday during lunch, and it seemed like the same number as before. Just one unit though. Other people, is the traffic the same at lunh/dinner? Thanks.
Pretty soon, the company may need to warn about negative impact on 4th quarter sales if this continues. Full transparency is needed.
From annual report:
" instances of food-bourne illness, real or perceived, whether at our restaurants or those of our competitors, may subject us to liability to affected customers, and could result in negative publicity about us or the rest of the industry that adversely affects our sales".
From article in TheStreet " In wake of outbreak, Chipotle has another scare to contain" click headlines
I did a bit of research on the Jack outbreak in the 1990s. The stock fell more than 75%. This may not be nearly as bad, but it is too early to tell. Especially how will customers react? Unknown.
Possibly severe according to Reuters article today. 4th quarter sales might be impacted. "Chipotle Ooutbreak threatens sales, emboldens critics" Click on headlines to read.