Chipotle Mexican Grill, Inc. (CMG) shares are experiencing a slight decline of 0.02% to $61.99 as of November 26, 2024. The stock's movement today is not directly linked to any specific news event, but discussions on Reddit suggest potential concerns over a proposed 25% tariff against Mexico and Canada, which could impact Chipotle's supply chain and ingredient costs, particularly avocados. This speculation has led some investors to consider shorting CMG, anticipating increased costs and potential disruptions.
On Reddit, discussions are primarily focused on the implications of the proposed tariffs and internal operational challenges at Chipotle. One user expressed concern about the tariffs, stating, "Guac prices are gonna go through the roof!" This sentiment reflects worries about rising costs for key ingredients. Meanwhile, another thread delves into employee frustrations with Chipotle's operational policies, particularly the "lock-in" policy, which some employees find inefficient and burdensome. A Chipotle employee shared their experience, saying, "I am one person with two hands trying to complete what took THREE people to barely stay afloat on." This highlights ongoing challenges within the company's workforce management.
Reflecting on the broader implications of the proposed tariffs, a Redditor commented, "Invest in U.S. manufacturing that sells only in domestic markets (if you can find any). If Trump imposes tariffs, there will be reciprocal tariffs against U.S. exports that will destroy foreign markets for U.S. manufacturers."