Chipotle beats Q2 sales estimates but net income falls due to rising costs, maintaining a Sell rating.

Chipotle reported better-than-expected Q2 results with a 2.2% increase in comparable sales, driven by new menu items and an improved rewards program. However, despite revenue growth, net income and earnings per share declined due to higher food and labor costs, which squeezed restaurant-level margins. The analyst maintains a Sell rating, citing the stock's high valuation above 20 times earnings and ongoing pressure on earnings per share. Competitive challenges and inflationary pressures raise doubts about Chipotle's ability to sustain growth and justify its premium valuation.