This Restaurant Stock Is Down 28% In 2025 And Yet Retail Investors Appear Skeptical Of Valuation – More Details Inside
Synopsis
According to a CNBC report, the burrito chain has partnered with drone delivery company Zipline to test autonomous food delivery.
Retail investors continued to remain bearish on Chipotle Mexican Grill (CMG), according to Stocktwits data, even after the burrito chain reportedly partnered with drone delivery company Zipline to test autonomous food delivery.
According to a CNBC report, certain customers in the greater Dallas area will be given the choice to select the “so-called Zipotle delivery” in the Zipline app starting on Thursday.
On Stocktwits, retail sentiment around the stock continued to trend in the ‘bearish’ territory, and message volume was at ‘extremely low’ levels, according to data from Stocktwits.
A user on Stocktwits questioned whether Wall Street was starting to notice that a 38x multiple for a Mexican restaurant was a little pricey.
Shares of Chipotle were down nearly 1% during midday trading. The CNBC report added that a small number of Zipline users will be allowed to order the full Chipotle menu to start. The report said a broader service launch for more users will happen in the coming weeks, and further expansion plans will be based on the learnings from the test.
Chipotle employees are expected to place the order into a Zipping Point that allows the drone to autonomously pick up the order for delivery, CNBC said. The report added that after reaching the delivery point, the drone will hover about 300 feet in the air, while the Zip, a droid, lowers to the ground.
Another user on Stocktwits noted that Chipotle is a “high-growth restaurant chain” and that its digital sales strength drives industry-leading unit economics.
In July, the food chain missed second-quarter revenue expectations and lowered its annual sales growth target as customers are dining out less due to higher prices and economic uncertainty weighing on purchase decisions.
Chipotle’s stock has declined 28% this year and lost 20% of its value in the last 12 months.
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