Chipotle Mexican Grill's upcoming second-quarter earnings report on July 29 could trigger a stock decline as profit pressures persist. The burrito chain's comparable sales have not grown more than 0.5% in at least five quarters, with first-quarter same-store sales rising just 0.5% and operating margin falling from 16.7% to 12.9%. Analysts expect earnings per share to edge down from $0.33 to $0.32, and if profits fall again, the stock is likely to sell off. While Placer.ai data shows positive same-store traffic in every month of the second quarter averaging about 1% growth, inflation and the revamped loyalty program are expected to continue pressuring the bottom line.
Chipotle Mexican Grill IncExpected Q2 earnings decline and falling operating margins signal profit pressures.