Chipotle’s Stagflation Trap

Labor costs are at 25%, traffic has stalled, and the "green" narrative is no longer paying the premium.

TL;DR

Everyone thinks Chipotle is an untouchable growth machine because they sell “Food with Integrity.” The reality? Their organic same-store sales growth just hit a wall at 0.3%, and labor costs have spiked to 25.2% of revenue. We are maintaining a short position because the “green” narrative is finally colliding with the reality of $100k-income households getting squeezed by oil prices and a cooling job market.

If you are serious about the trade, the deep dive is below the paywall.