As Chipotle Mexican Grill's (CMG) stock has swooned this year, bullish investors have been latching on to anything that could signal that the worst is over. The latest savior: Chipotle's queso.
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Queso, a cheese sauce that will soon be available in stores, is expected to drive consumers back into Chipotle stores, and also has the benefit of being cheaper than the avocados used in guacamole. But is it enough to reverse Chipotle's 19% slide this year?
In downgrading Chipotle to Underperform from Market Perform, Cowen's Andrew Charles and team don't see queso being enough to drive long-term growth. They explain why:
Shares of Chipotle Mexican Grill have dropped 3.8% to $305.10 at 11:56 a.m. today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
