Chipotle Shares Slide After 92,000-Job Drop; Analyst Forecasts Mid-Single-Digit H2 Growth
Chipotle shares fell following a Labor Department report showing a 92,000-job decline and a 4.4% unemployment rate, with the restaurant sector shedding 30,000 jobs last month. DA Davidson’s Matt Curtis initiated coverage with a buy rating, forecasting mid-single-digit sales growth in the back half of the year.
1. Labor Market Weakness Impacts Shares
Shares of Chipotle Mexican Grill declined in afternoon trading after the Labor Department reported an unexpected loss of 92,000 U.S. jobs in February and a rise in the unemployment rate to 4.4%. The restaurant and bar industry accounted for 30,000 of those job cuts, fueling investor concerns over potential consumer spending headwinds for dining chains.
2. DA Davidson Initiates Buy Rating
DA Davidson analyst Matt Curtis initiated coverage of Chipotle with a buy rating, forecasting a rebound to mid-single-digit sales growth in the second half of the year. The outlook reflects confidence in a recovery of consumer demand and the chain’s ability to leverage its digital ordering platform to sustain revenue momentum.