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Has Chipotle Stock Bottomed Out?

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Stock performance

On November 29, 2017, Chipotle Mexican Grill’s (CMG) announcement that it had begun the search for a CEO to replace Steve Ells boosted its stock price. The company’s stock price reached $313.71 on December 19, 2017.

However, on December 20, 2017, reports of food safety issues emerged at a Los Angeles Chipotle restaurant, which led to a fall in the company’s stock price. As of December 29, 2017, Chipotle was trading at $289.03, 7.7% lower than its closing price on December 19, 2017. It was trading 9.0% higher than its 52-week low of $263 and 72.6% lower than its 52-week high of $499.

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Performance in 2017

Last year was a tough one for Chipotle, as it continued to struggle with food safety issues. Issues were reported on November 13, 2017, and on July 18, 2017, dragging down Chipotle’s stock price. The company’s stock price fell 23.4% in 2017, whereas Shake Shack’s (SHAK) rose 20.7% and The Cheesecake Factory’s (CAKE) fell 19.6%.

Series overview

In this series, we’ll look at analysts’ revenue and earnings estimates for Chipotle for the next four quarters. We’ll also cover management’s guidance for 2017, the company’s valuation, and analysts’ recommendations. Let’s start our analysis by discussing analysts’ revenue estimates.

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