Is This Stock Losing Steam?

Before you go, we thought you'd like these...
Before you go close icon

The market's reaction to Chipotle's (NYS: CMG)  Q2 earnings was swift and severe, with the stock down more than 20% Friday. But how did the numbers really look? Charly and Jason think the business is doing just fine. Comparable-store sales were up 8%, operating margins improved to 19%, and earnings were up 60%. Chipotle remains a best-of-breed restaurant operator. At issue is that the market has priced the stock for perfection, and when that happens, shareholders have to understand the market is fickle and easily spooked.

If you're looking for some long-term investing ideas, let us invite you to read the Fool's brand-new special report: "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so just click here and get your copy today.

The article Is This Stock Losing Steam? originally appeared on Fool.com.

Charly Travers has no positions in the stocks mentioned above. Jason Moser owns shares of Panera Bread and Starbucks. The Motley Fool owns shares of Chipotle Mexican Grill, Panera Bread, and Starbucks. Motley Fool newsletter services recommend Chipotle Mexican Grill, Panera Bread, and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners