Chipotle’s same-store sales declined for the second quarter in a row, prompting the company to lower its forecast for the year to flat comparable-restaurant sales. The stock is down 24% in 2025, leading investors to question if this dip is a buying opportunity or a sign to run. Transactions sank 4.9%, leading to a 4% decline in Q2 sales. The company credits limited-time offerings for a rebound in sales, but still expects flat comparable-store sales for the year. Despite recent struggles, Chipotle aims to return restaurant-level margins back to 29-30% and continue expanding domestically and internationally. The stock currently trades at a forward P/E multiple of about 38 based on 2025 estimates and 32 based on 2026 estimates. Chipotle’s long-term growth potential remains strong, with plans to increase U.S. locations by 8-10% annually. The Motley Fool Stock Advisor team does not include Chipotle in their top 10 stocks to buy now, emphasizing the need for careful consideration before investing.

Read more at Yahoo Finance: Chipotle Shares Slide on Weak Same-Store Sales. Time to Buy the Dip or Run for the Hills?