Chipotle's Latest Challenge

By Chris Hill – Jan 16, 2013 at 8:20PM

NYSE: CMG

Chipotle Mexican Grill

Market Cap

$87B

Today's Change

(-0.33%) -$10.43

Current Price

$3,183.25

Price as of May 8, 2024, 4:00 p.m. ET

The company warns that Q4 earnings will miss the mark.

The following video is from Wednesday's MarketFoolery podcast, in which host Chris Hill, along with analysts Austin Smith and Bryan Hinmon, discuss the top business and investing stories.

Chipotle (CMG -0.33%) shares fell more than 5% today after warning that Q4 earnings will miss because of higher food costs. In this segment, the guys analyze the results and share why Chipotle's strength of the past may be its current challenge. During the recession, Chipotle was able to occupy a good spot in between McDonald's (MCD 0.37%) and Darden Restaurants (DRI 0.65%) for consumers "trading down" on restaurants. Next week it's rolling out a catering service in Colorado that will eventually go nationwide, and the guys also discuss why the catering service may be good in the long run but that the near term is all about Chipotle's main business.

The relevant video segment can be found between 2:51 and 7:05.

For the full video of today's MarketFoolery, click here.

Austin Smith owns shares of McDonald's. Bryan Hinmon and Chris Hill have no position in any stocks mentioned. The Motley Fool recommends Chipotle Mexican Grill, McDonald's, and Panera Bread and owns shares of Chipotle Mexican Grill, Darden Restaurants, McDonald's, and Panera Bread. 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.