Finding hyper-growth stocks worth buying in this market environment isn’t as easy as it once was. Just a few months ago, any company that mentioned AI on their earnings call got a bump. Today, investors largely want to see any sort of AI investment show some kind of payoff, or ROI, before jumping in.That said, there are companies out there seeing significant growth tied to AI or other secular tailwinds worth considering. The companies on this list have either seen significant upside from their AI investment ...

Why are profits about to drop?On June 18, restaurant chain Chipotle Mexican Grill (CMG -1.95%) completed its highly publicized 50-for-1 stock split. Shareholders saw their $3,000 stock become 50 shares worth about $60 each.Then, on July 24, Chipotle reported financial results for the second quarter, and the stock initially soared in after-hours trading. But once management spoke with analysts on the earnings call, the stock settled. While the Q2 headline numbers were great, there were concerns in the subseq ...

PART I - Financial Information [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201%20Financial%20Statements%20(Unaudited)) Unaudited Q2 2024 financial statements show significant revenue and net income growth, with total assets increasing to **$8.92 billion** [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets reflect total assets of **$8.92 billion** and total shareholders' equity of **$3.71 billion** as of June 30, 2024 Condensed Consolidated Balance Sheets (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $1,786,298 | $1,620,713 | | Total assets | $8,919,835 | $8,044,362 | | **Liabilities and Shareholders' Equity** | | | | Total current liabilities | $1,043,156 | $1,030,625 | | Total liabilities | $5,208,015 | $4,982,155 | | Total shareholders' equity | $3,711,820 | $3,062,207 | | Total liabilities and shareholders' equity | $8,919,835 | $8,044,362 | [Condensed Consolidated Statements of Income and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) The statements of income show Q2 2024 total revenue of **$2.97 billion** and net income of **$455.7 million**, with diluted EPS at **$0.33** Condensed Consolidated Statements of Income (in thousands, except per share data) | Metric | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $2,973,117 | $2,514,801 | $5,674,966 | $4,883,381 | | Income from operations | $586,053 | $431,810 | $1,027,345 | $799,416 | | Net income | $455,671 | $341,790 | $814,958 | $633,434 | | Diluted earnings per share | $0.33 | $0.25 | $0.59 | $0.46 | [Condensed Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased to **$3.71 billion** by June 30, 2024, influenced by net income and a **$5.19 billion** treasury stock retirement - Total shareholders' equity increased from **$3.06 billion** at the end of 2023 to **$3.71 billion** as of June 30, 2024, driven by net income of **$815.0 million** for the six-month period[10](index=10&type=chunk) - During the second quarter of 2024, the company retired 507,166 shares of treasury stock, resulting in a reduction of **$5.19 billion** in treasury stock and a corresponding deduction from retained earnings[10](index=10&type=chunk)[42](index=42&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statements show **$1.13 billion** from operating activities and a net change of **$248.0 million** in cash for the first six months of 2024 Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six months ended June 30, 2024 | Six months ended June 30, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,131,812 | $1,037,546 | | Net cash used in investing activities | $(637,254) | $(627,692) | | Net cash used in financing activities | $(245,408) | $(289,113) | | Net change in cash, cash equivalents, and restricted cash | $248,029 | $121,006 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail key accounting policies, a **50-for-1 stock split**, restaurant operations, unearned revenue, and an undrawn **$500 million** credit facility - On June 26, 2024, the company executed a **50-for-1 stock split**, with all share and per-share data retroactively adjusted to reflect this split[17](index=17&type=chunk) - As of June 30, 2024, Chipotle operated **3,530 restaurants**, including 3,460 in the U.S. and 70 internationally, plus one international licensed restaurant[16](index=16&type=chunk) Unearned Revenue from Loyalty and Gift Cards (in thousands) | Liability Type | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Gift card liability | $133,148 | $164,930 | | Chipotle Rewards liability | $49,183 | $44,750 | - The company has a **$500 million** revolving credit facility which remained undrawn as of June 30, 2024, and was in compliance with all covenants[58](index=58&type=chunk) - As of June 30, 2024, **$647.7 million** was authorized for future share repurchases, including an additional **$400 million** approved on June 5, 2024[42](index=42&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights strong Q2 2024 performance with **18.2% revenue growth** and **11.1% comparable sales increase** Second Quarter 2024 Financial Highlights (YoY) | Metric | Q2 2024 | % Change | | :--- | :--- | :--- | | Total Revenue | $3.0 billion | +18.2% | | Comparable Restaurant Sales | | +11.1% | | Diluted EPS | $0.33 | +32.0% | - The **11.1% increase** in comparable restaurant sales was primarily driven by an **8.7% increase** in transactions and a **2.4% increase** in average check[64](index=64&type=chunk)[70](index=70&type=chunk) - The company opened **52 new restaurants** in Q2 2024, with 46 featuring a Chipotlane, targeting 285-315 new openings for the full year[65](index=65&type=chunk) - As of June 30, 2024, the company had **$2.4 billion** in cash and marketable investments and **$647.7 million** remaining under its share repurchase authorization[90](index=90&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Q2 2024 results show **18.2% total revenue growth** to **$3.0 billion**, driven by **11.1% comparable restaurant sales** and improved operating cost leverage Revenue Performance (Q2 2024 vs Q2 2023) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Total Revenue | $2,973.1M | $2,514.8M | | Comparable Restaurant Sales Increase | 11.1% | 7.4% | | Transactions Growth | 8.7% | 4.4% | | Average Check Growth | 2.4% | 3.0% | - Food, beverage and packaging costs were flat at **29.4% of revenue** in Q2 2024, as a **1.2% benefit** from menu price increases was offset by inflation for avocados and higher beef incidence[72](index=72&type=chunk) - Labor costs as a percentage of revenue decreased by **0.2% to 24.1%** in Q2 2024, with **1.5% benefit** from sales leverage partially offset by **1.1%** from wage inflation, including California's new minimum wage[74](index=74&type=chunk) - Other operating costs decreased by **1.0% as a percentage of revenue to 12.9%** in Q2 2024, primarily due to sales leverage and lower delivery expenses[77](index=77&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$2.4 billion** in cash and investments, generating **$1.1 billion** in operating cash flow for the first half of 2024 - Cash provided by operating activities increased to **$1.1 billion** for the first six months of 2024, up from **$1.0 billion** in the same period of 2023, primarily due to higher net earnings[93](index=93&type=chunk) - Cash used in financing activities decreased to **$245.4 million** in the first half of 2024 from **$289.1 million** in 2023, mainly due to a **$49.4 million** decrease in treasury stock repurchases[94](index=94&type=chunk) - The company's primary uses of cash are funding new restaurant construction, share repurchases, and maintaining existing restaurants[90](index=90&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=23&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from commodity price volatility and interest rate fluctuations through various mitigation strategies - Chipotle is exposed to commodity price risks for its food ingredients and packaging, influenced by factors like weather, foreign demand, and exchange rates[98](index=98&type=chunk) - The company manages commodity risk through a mix of pricing protocols with suppliers, including fixed-price and formula-based agreements, for periods ranging from one to 24 months[98](index=98&type=chunk) - Interest rate risk exists due to the company's **$2.5 billion** in cash, cash equivalents, and investments, as changes in rates affect interest income[99](index=99&type=chunk) [Item 4. Controls and Procedures](index=23&type=section&id=Item%204%20Controls%20and%20Procedures) Management affirmed the effectiveness of disclosure controls and procedures as of June 30, 2024, with no material changes to internal financial reporting controls - Based on an evaluation as of June 30, 2024, the Chief Executive Officer and Chief Financial and Administrative Officer concluded that the company's disclosure controls and procedures were effective[102](index=102&type=chunk) - No changes occurred during the quarter ended June 30, 2024, in the company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, it[103](index=103&type=chunk) PART II - Other Information [Item 1. Legal Proceedings](index=23&type=section&id=Item%201%20Legal%20Proceedings) Legal proceedings information is referenced in Note 11, with no belief that current claims will have a material adverse effect - For details on legal proceedings, the report refers to Note 11 of the financial statements[104](index=104&type=chunk) [Item 1A. Risk Factors](index=24&type=section&id=Item%201A%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for December 31, 2023 - No material changes have been made to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[107](index=107&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2024, the company repurchased **2.38 million shares** at an average of **$63.52**, with **$647.7 million** remaining for future repurchases Share Repurchases in Q2 2024 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2024 | 94,050 | $63.73 | | May 2024 | 1,023,200 | $63.18 | | June 2024 | 1,265,467 | $63.79 | | **Total Q2** | **2,382,717** | **$63.52** | - As of June 30, 2024, the approximate dollar value of shares that may yet be purchased under the repurchase programs was **$647.7 million**[106](index=106&type=chunk) [Item 3. Defaults upon Senior Securities](index=24&type=section&id=Item%203%20Defaults%20upon%20Senior%20Securities) The company reports no defaults upon senior securities - The company reports no defaults upon senior securities[109](index=109&type=chunk) [Item 4. Mine Safety Disclosures](index=24&type=section&id=Item%204%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This item is not applicable to the company[109](index=109&type=chunk) [Item 5. Other Information](index=24&type=section&id=Item%205%20Other%20Information) Chief Customer and Technology Officer Curt Garner adopted a new Rule 10b5-1 trading plan for the potential sale of up to **189,000 shares** - On June 10, 2024, Chief Customer and Technology Officer Curt Garner adopted a new 10b5-1 trading plan for the potential sale of up to **189,000 shares** of common stock[110](index=110&type=chunk) [Item 6. Exhibits](index=25&type=section&id=Item%206%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - Exhibits filed with the report include CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1) and interactive data files (Exhibits 101 and 104)[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk)

Chipotle CEO Brian Niccol announced this week that the company is ensuring portion sizes are generous and consistent across all stores after customers aired frustrations on social media accusing the fast-casual chain of using fewer ingredients in its popular burrito bowls. "There was never a directive to provide less to our customers," Niccol told analysts Wednesday on the company's earnings call. The chief executive added that generous portions has always been a core brand equity of the fast-casual restaur ...

Chipotle Mexican Grill, Inc. (CMG) released second-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. Following the earnings release, the company’s shares rose 4.3% during the after-hours trading session on Jul 24.During the second quarter, the company benefited from successful promotions regarding Chicken Al Pastor driving significant engagement and sales. Also, the emphasis on throughput and staff training ...

Landscape and nature photographer based in Upstate, New York Introduction: Chipotle Delivers A Double Beat After reporting its Q2 2024 numbers in the after-hours session yesterday, Chipotle Mexican Grill, Inc. (NYSE:CMG) saw its stock shoot up by ~15%, with the company registering a double beat: GoogleFinanceChipotle Q2 2024 Earnings (SeekingAlpha) In Q2 2024, Chipotle's revenue grew by 18.2% y/y to $3B, driven by an +11.1% increase in comparable store sales [+8.7% growth in user traffic (transactions) ...

Key TakeawaysShares in fast casual restaurant Chipotle Mexican Grill jumped in extended trading Wednesday after the burrito maker reported second-quarter results that came in above Wall Street’s expectations.Following a correction of around 24%, Chipotle shares appear to have found support near a trendline linking prior price action and the 200-day moving average, setting the stage for a post-earnings pop.Chipotle shares may run into overhead resistance at key chart levels including $57, $61, and $65. Share ...

The fast-casual restaurant chain just completed a strong quarter fueled by growth and operational efficiency.Key PointsEarnings per share (EPS) surpassed expectations.Q2 revenue saw significant year-over-year growth.Operational margins improved despite rising costs.Fast-casual restaurant chain Chipotle Mexican Grill(CMG -1.47%)released second-quarter earnings on Wednesday that showed significant earnings and revenue growth, exceeding analysts' expectations. Chipotle's EPS of $0.33 jumped 32% year over year ...

Chipotle Mexican Grill, Inc. (NYSE:CMG) Q2 2024 Earnings Conference Call July 24, 2024 4:30 PM ET Company Participants Cindy Olsen - Head, IR and Strategy Brian Niccol - Chairman and CEO Jack Hartung - CFO and CAO Conference Call Participants David Tarantino - Baird Sara Senatore - Bank of America Dennis Geiger - UBS Peter Saleh - BTIG Christine Cho - Goldman Sachs Sharon Zackfia - William Blair John Ivankoe - JPMorgan Andrew Charles - TD Cowen Lauren Silberman - Deutsche Bank Jon Tower - Citi Brian Harbour ...

Chipotle Mexican Grill (CMG) reported $2.97 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 18.2%. EPS of $0.34 for the same period compares to $0.25 a year ago.The reported revenue represents a surprise of +1.27% over the Zacks Consensus Estimate of $2.94 billion. With the consensus EPS estimate being $0.31, the EPS surprise was +9.68%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wal ...