Chipotle has fallen enough, time to buy, Barron’s says

Few restaurant stocks have been able to hit the sweet spot the way Chipotle Mexican Grill has in recent years. While other chains have struggled as price-sensitive consumers pull back, the burrito maker has appeared unstoppable, delivering a seemingly endless string of impressive earnings results and guidance-with share price gains to match, Teresa Rivas writes in this week’s edition of Barron’s. That is, it did until late last month, when Chipotle reported second-quarter results. Although its earnings per share of 33 cents, revenue of $3B, and same-store sales topped analysts’ estimates, as usual, the company’s post-report pop soon fizzled, the author notes. Shares, at a recent $54.32, are down some 13% over the past month, following Chipotle’s 50-to-1 stock split. The stock’s subsequent decline looks like a buying opportunity, argues Rivas.