Chipotle (CMG) Surges Even Higher On Strong Third Quarter Earnings
Shares of Chipotle (CMG), one of the highest-flying growth stocks in the restaurant industry, surged even higher recently after the company reported mixed third quarter earnings. Chipotleâ s earnings per share rose 17.2% to $2.66, missing the consensus estimate of $2.78. However, revenue climbed 18% to $826.9 million, topping the $820.3 million which analysts had forecast.
Same-store sales climbed 6.2%, well ahead of the 4.7% that analysts had expected. Daily Chart
Chipotleâ s revenue growth was fueled by the opening of 37 new restaurants, a strategy that the company has consistently used to keep its top line growing. In the first nine months of the year, Chipotle opened a total of 129 new restaurants, bringing its total store count to 1,539, including its first location in Germany. Restaurant level operating margin declined from 27.4% to 26.8%. Food costs surged from 32.6% to 33.6% -- mainly caused by higher prices for dairy products, chicken, tomatoes, corn, and more expensive, non-GMO cooking oils. Chipotle has struggled in this department over the past year, primarily because its entire business model is built upon its reputation of selling â
Published on Oct 24, 2013
By Leo Sun