Chipotle's stock falls again ahead of earnings
Shares of Chipotle Mexican Grill Inc. fell 0.9% in afternoon trade, ahead of the fast-casual Mexican restaurant chain's fourth-quarter results, due out after the close. The stock was headed for a sixth decline in eight sessions since closing at a 3-year high on Jan. 25. Chipotle's stock has gained ground the day after the past three quarterly reports, after declining after 13 of the prior 16 reports. Earlier this week, Wedbush analyst Nick Setyan reiterated his underperform rating, but raised his stock price target to $440, which is about 16% below current levels, from $400. He said that while he no longer sees meaningful downside to consensus 2019 and 2020 expectations, "we believe Chipotle's recent valuation expansion incorporates buy-side expectations that are higher than consensus, and could prove overly optimistic." The stock has run up 71% over the past 12 months, while the SPDR Consumer Discretionary Select Sector ETF has gained 3.6% and the S&P 500 has edged up 1.3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.