Chipotle Mexican Grill (CMG) Slashes 13% on Disappointing Q2, Outlook

We recently published Double-Digit Disaster: 10 Big Names Fall Off the Cliff. Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the worst-performing stocks on Thursday.

Chipotle Mexican Grill fell by 13.34 percent on Thursday to close at $45.74 apiece as investors digested a mixed earnings performance and weak outlook for the rest of the year.

In its earnings release, Chipotle Mexican Grill, Inc. (NYSE:CMG) said net income for the second quarter of the year dropped by 4.3 percent to $436 million from $455.7 million in the same period last year.

Total revenues, on the other hand, grew by 3 percent to $3.06 billion from $2.97 billion year-on-year, driven by new restaurant openings. Comparable store sales, however, decreased by 4 percent due to lower transactions.

Looking ahead, the company expects same-store sales to remain flat year-on-year, but it is working on initiatives to boost performance, including improving execution, introducing new menu innovations, amplifying the rewards program, and expanding globally.3

Additionally, Chipotle Mexican Grill, Inc. (NYSE:CMG) also expects between 25 and 27 percent of tax rate before discrete items for the full year.

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