Chipotle – Forgiven. Where Do They Go From Here?
Chipotle was at the top of the food chain about a year ago, but it ran into serious problems when their customers started getting sick. The stock price tumbled down to a 52-week low of $384.77 a share, from the high of $757.00.
Their income statement suffered too, recording $67.9 million of net income for Q4, 2015, a 53 percent drop since the prior quarter, and then a loss of $26.4 million in Q1, 2016. It bounced back up in Q2, 2016 reporting $25.6 million in net income.
Our sector comparison indicates the company is well below the sector average in a number of areas, including the balance sheet, income statement, and cash flow. The returns are poor as well.
The sector average 1-year return is 6.92percent; Chipotle reports a negative 47.2 percent. The only positive gain reported is a 42.2 percent 5-year return, but that is still well below the sector average of 184.6 percent.
For now, Chipotle is on HOLD, with a C- rating from Weiss. It was rated A- at the end of December 2015, and it fell all the way down to a C- in just four months.
Although it seems that the company is down in the dumps, some figures, such as profits in Q2, may indicate recovery. Make sure to follow Chipotle on Weiss Ratings and see if our rating changes anytime soon to reflect their improving numbers.