Chipotle Mexican Grill, Inc. (CMG) released first-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.During the quarter, the company reported benefits from enhanced throughput and effective marketing initiatives like Braised Beef Barbacoa and Chicken Al Pastor, leading to strong sales and transaction growth.Following the earnings release, the company’s shares rose 3.2% during the after-hours trading session o ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Chipotle Mexican Grill (CMG) .Chipotle currently has an average b ...

The burrito chain's double-digit revenue growth from 2023 has carried over into 2024 -- and there's no sign of a slowdown.Expectations were high for fast-casual burrito chain specialist Chipotle Mexican Grill (CMG 0.40%) going into 2024. Its sales jumped 14.3% year over year in 2023, with growth accelerating to 15.4% in the final quarter of the year. Additionally, earnings per share soared as the company's full-year operating margin expanded from 13.4% in 2022 to 15.8%. To top it off, the stock soared 65% l ...

Key TakeawaysChipotle shares climbed more than 3% in premarket trading Thursday after the fast casual restaurant chain served up quarterly earnings and revenue results ahead of analysts' expectations.The company reported same store sales growth in the period of 7%, helped by a 5.4% YOY jump in transaction volume.CEO Brian Niccol said that Chipotle saw growth across all income groups during the quarter.A close above the key $3,000 level in Chipotle shares would likely lead to a resumption of the stock's long ...

One of Capitol Hill's most-active stock traders is sending a company with well-defined competitive advantages -- that also happens to be on the verge of its first-ever stock split -- to the chopping block.Over the three previous weeks, Wall Street's major stock indexes have sent a stern reminder to investors that equities don't move up in a straight line. The iconic Dow Jones Industrial Average, benchmark S&P 500, and innovation-powered Nasdaq Composite have all retraced by at least 5% from their respective ...

Higher prices at Chipotle haven’t kept customers from visiting and spending at the fast-casual restaurant.They’re doing so because of value, executives said during the company’s quarterly earnings call.Chipotle saw its comparable restaurant sales increase 7% year over year during the first quarter, the company said in a Wednesday (April 24) earnings release.The company attributed that increase to higher transactions of 5.4% and a 1.6% increase in average check.Chipotle has also seen an increase in “side att ...

Chipotle Mexican Grill (CMG) reported stronger-than-expected first-quarter earnings. CMG stock rose modestly overnight, signaling an early entry and near an official buy point.X Chipotle earnings jumped 27% to $13.37 a share. That easily topped FactSet consensus of $11.81 a share. That's the second straight quarter of accelerating growth. Sales grew nearly 14% to $2.684 billion, slightly beating views.Same-restaurant sales rose 7%. Operating margin picked up to 16.3% from 15.5%, with restaurant operating ma ...

Financial Data and Key Metrics - Sales grew 14% YoY to $2.7 billion, driven by a 7% comp sales growth and over 5% transaction growth [8] - In-store sales grew by 19% YoY, with digital sales representing 37% of total sales [8] - Restaurant level margin increased by 190 basis points YoY to 27.5% [8] - Adjusted diluted EPS was $13.37, representing 27% growth YoY [8] - The company opened 47 new restaurants, including 43 Chipotlanes [8] Business Line Data and Key Metrics - The company's marketing campaigns, including the return of Chicken Al Pastor and the promotion of Braised Beef Barbacoa, drove incremental transactions and spend [21][22] - The rewards program now has 40 million members, with a focus on increasing engagement and frequency [23] - The company is exploring technology tools to improve productivity, including automated digital make lines and Autocado, which cuts and peels avocados [24][25] Market Data and Key Metrics - The company opened its first restaurant in Kuwait, marking its first entry into a new country in over 10 years [26] - In Europe, the company is aligning its operations with North American standards, with a focus on improving economics and unlocking growth potential [27] - Canada's operational KPIs, including throughput, have improved to be on par with the US, setting the stage for rapid expansion [28] Company Strategy and Industry Competition - The company's five key strategies include sustaining world-class people leadership, running successful restaurants, making the brand visible and loved, amplifying technology and innovation, and expanding access and convenience [9] - The company aims to double the number of restaurants in North America to over 7,000, with a focus on internal promotions and employee development [12] - The company's economic model, which combines premium ingredients, affordable prices, and attractive margins, is a significant competitive advantage [39] Management Commentary on Operating Environment and Future Outlook - The company raised its full-year comp guidance to mid-to-high single digits, driven by strong transaction trends [30] - The company expects Q2 comps to be the highest of the year, benefiting from an extra day due to Easter [30] - The company is optimistic about its growth potential, both in North America and internationally, and is focused on achieving long-term goals [29] Other Important Information - The company announced a 50-for-1 stock split, making the stock more accessible to employees and a broader range of investors [36] - The company's balance sheet remains strong, with $2.2 billion in cash, restricted cash, and investments, and no debt [37] Q&A Session Summary Question: Speed of Service Improvement - The company improved throughput by nearly two entrees in peak 15 minutes compared to last year, with progress seen every month [17][43] - The company believes there is significant upside in throughput, which will be a multi-year focus [45] Question: Traffic Trends and Consumer Behavior - Transaction growth was broad-based across all income cohorts, driven by the company's value proposition [53] - The company saw a 5.5% increase in transactions, offset by a 1.5% increase in check size [54] Question: Impact of Throughput on Transactions - Throughput is seen as both a driver and enabler of transaction growth, with the potential to drive comps for multiple years [61] Question: Second Concept Development - The company is focused on growing the Chipotle brand and is not currently working on a second concept, though it remains open to opportunities [64] Question: Pricing and Mix Impact - Pricing in Q1 was around 2.7%-2.8%, with Q2 and Q3 expected to be around 3.5% due to a price increase in California [67] - The company is seeing positive side attachment growth, particularly in the in-store channel [70] Question: Path to $4 Million AUVs - The company is focused on increasing customer frequency and engagement through its rewards program and operational execution [74] Question: Canadian and European Market Potential - The company sees significant growth potential in Canada and is applying lessons learned there to its European operations [77][78] Question: Operational Initiatives and Cultivate Fund - The company is making progress on operational initiatives like the dual-sided grill, Hyphen, and Autocado, with plans to implement them in restaurants later this year [87] - The Cultivate Next fund continues to explore innovative ideas across the supply chain [89] Question: California Price Increase Impact - The company took a 6%-7% price increase in California to offset a 20% wage increase, with no immediate impact on consumer behavior observed [92] Question: Chipotlanes and Drive-Through Potential - The company does not plan to introduce a traditional drive-through, as it would compromise the customization experience [96] Question: Rewards Program Engagement - The company is using machine learning and AI to identify and re-engage less frequent rewards members, with positive results [99] Question: Forecasting and Deployment Tools - Improved forecasting and deployment tools have contributed to lower turnover and better throughput performance [103] Question: Peak Period Execution - The company has introduced a new real-time visibility tool for managers to track and improve throughput during peak periods [107] - The range of throughput performance varies widely, with top-performing restaurants achieving significantly higher numbers [109]

Wednesday, April 24th, 2024Markets finished essentially flat on the day. It was a bit of a topsy-turvy trading session, at least for three of the four major indices today, with the Dow just closing into the red at -0.11%, the S&P 500 squeaked by to the positive, +0.02%, and the Nasdaq was basically a mirror-image of the Dow: +0.10%. The small-cap Russell 2000 fell furthest during morning trading and never found its way above zero again; it closed -0.43% by the bell.Zacks Rank #2 (Buy)-rated Meta Platforms ( ...