The uptrend in Chipotle stock is due to the company’s strong financial performance over the past several quarters. The company’s top line has grown at a double-digit rate in the past four consecutive quarters. Also, Chipotle’s comps growth has accelerated for seven consecutive quarters, which is commendable.
Why is Chipotle’s stock so high?
Sep 11, 2021 · 1. Increased Online Sales. The very first reason Chipotle’s stock is so high is that its sales are increasing online. If you know anything about the internet and the way it can drive …
Why did Chipotle’s same-store sales drop 12 percent in Q3?
Why Is Chipotle Stock So High: The Bottom Line Chipotle has always had a knack for growth, despite operating in a market with heavy competition. While other restaurants large and small …
Is Chipotle stock a good investment in 2020?
Feb 09, 2022 · Matt Miczulski. Posted: 9 February 2022 5:04 pm. News. The restaurant’s stock started climbing after reporting better-than-expected earnings. Analysts say it has more room …
Why is Chipotle’s business model so successful?
Why Chipotle Stock Went Up. Chipotle was founded in Colorado in 1993 and by the end of the 20th Century, McDonald’s ( MCD) was a major investor. This helped the company scale its …
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Shares of Chipotle Mexican Grill ( CMG 0.38%) were moving higher after the burrito chain received a bullish analyst note, showing that the company is performing better than expected during the ...
Why did Chipotle stock go so high?
Its share prices are back to the trajectory they were on pre-Covid, bucking the industry trend and leaving a spotlight on this company for better or worse.
Why is Chipotle growing so fast?
Is Chipotle stock overvalued?
Why is Chipotle stock higher than McDonald's?
When did Chipotle go public?
How many stores does Chipotle have 2021?
Is Chipotle stock a good buy?
Is Chipotle a profitable company?
Is there chick fil a stock?
Is Chipotle the new McDonald's?
...
Chipotle Mexican Grill.
| Type | Public |
|---|---|
| Founder | Steve Ells |
| Headquarters | 610 Newport Center Drive, Newport Beach, California, U.S. |
| Number of locations | 2,966 (December 2021) |
Who is the owner of Chipotle?
Who founded Chipotle?
When was chipotle founded?
Chipotle was founded in Colorado in 1993 and by the end of the 20th Century, McDonald’s ( MCD) was a major investor. This helped the company scale its franchise model into over 2,700 locations. By 2006 the company held its initial public offering (IPO) and McDonald’s sold its holdings.
Will there be a recession in 2021?
And a recession in 2021 could lead to people cooking and eating at home more. Eating out costs over three times as much as groceries to cook at home. Meanwhile grocery stores are pushing into the pre-made meal market. Each of these factors could cause Chipotle’s stock to bleed money like a badly made burrito.
Shares of the burrito restaurant got a boost from an analyst
Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market. Follow @tmfbowman
What happened
Shares of Chipotle Mexican Grill ( NYSE:CMG) were moving higher after the burrito chain received a bullish analyst note, showing that the company is performing better than expected during the COVID-19 pandemic.
So what
In a note this morning, Cleveland Research analyst Steven Gojak said comparable sales declines at the fast-casual chain have improved since the beginning of the coronavirus outbreak.
Now what
Chipotle stock has indeed held up well during the pandemic as the stock is only down 16% from its all-time high just before the outbreak hit. After today's gains, the restaurant stock has actually outperformed the S&P 500 since the sell-off started, rallying back after initial losses.
Chipotle Q2 Earnings Lag Estimates, Digital Sales Solid
Chipotle reported mixed second-quarter 2020 results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same. The bottom line missed the consensus mark after beating the same in the 10 consecutive quarters. Meanwhile, the top line outpaced the consensus estimate for the seventh straight quarter.
Revenues & Comparable Restaurant Sales
Quarterly revenues of $1,364.7 million surpassed the consensus mark of $1,333 million but declined 4.8% year over year. The downside can primarily be attributed to dismal in-store traffic and sharp decline in comparable restaurant sales. However, it was partially offset by new restaurant openings and robust digital sales.
Costs, Operating Highlights & Net Income
Food, beverage and packaging costs, as a percentage of revenues, decreased 40 basis points (bps) to 33.3%. It was primarily owing to lower avocado costs, increase in menu price in late 2019, and to some extent, lower waste, freight, and paper costs.
Balance Sheet
The company had $934.6 million in cash, restricted cash, and short-term investments as of Jun 30, 2020. The company doesn’t have any debt. A strong balance sheet will help the company tide over the coronavirus-induced crisis.
Surging profits from higher prices and comp sales, a new CEO changing the narrative, and a likely short squeeze are driving the burrito chain's stock much higher
Born and raised in the Deep South of Georgia, Jason now calls Southern California home. A Fool since 2006, he began contributing to Fool.com in 2012. Trying to invest better? Like learning about companies with great (or really bad) stories? Jason can usually be found there, cutting through the noise and trying to get to the heart of the story.
What happened
Shares of Chipotle Mexican Grill, Inc. ( NYSE:CMG) are surging today, up 24.8% at 12:39 p.m. EDT. The big catalyst is yesterday afternoon's release of the company's first-quarter 2018 earnings report.
So what
Chipotle's strong profit growth was only part of what has the market so excited about the company's stock today. Same-store sales -- also called comps -- were up 2.2% in the quarter, a sharp improvement from the past two quarters, which saw comps growth fall below 1%.
Now what
Chipotle's big profit increase is a notable positive, and it seems that Niccol is working hard to change the narrative and refocus the burrito chain on growth.
The burrito chain dipped again as investors continued to balk at restaurant stocks
Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market. Follow @tmfbowman
What happened
Shares of Chipotle Mexican Grill ( NYSE:CMG) were falling again Tuesday as investors continued to bail from restaurant stocks as the coronavirus outbreak spreads across the country. What was different about today was that Chipotle shares sank even while the broader market rallied on hopes for a stimulus bill.
So what
Last night, New York, New Jersey, and Connecticut, which have combined population of more than 30 million people, implemented a ban on restaurants (except for takeout and delivery), and a similar law was imposed in the San Francisco Bay Area.
Now what
There's no doubt that Chipotle's financial results are going to take a hit over the coming weeks, or more likely months. But the stock has now fallen more than 41% since the coronavirus-related sell-off began on Feb. 24, compared with a retreat of about 25% in the S&P 500 .
