The stock market can feel like easy money when every investment rises. However, the stock market is volatile and periodically goes through sharp corrections. Patient investors can use these dips as long-term buying opportunities and accumulate positions in promising growth stocks to buy.Growth-oriented investments can outperform the stock market, which also means these investments can lose more ground than the market when things go wrong. The long-term outlook is promising for these seven top growth stocks ...

Key PointsChipotle Mexican Grill had a robust quarter with positive comps, increased leverage, and positive guidance. The store count is forecast to grow more than 8% this year. The international expansion will equal the North American segment over time, doubling a business on track to grow by 100% in the next decade. 5 stocks we like better than Chipotle Mexican GrillThe price action in Chipotle Mexican Grill NYSE: CMG has been smoking hot, and it is not over yet. The 1100% gain posted since 2017 is the ti ...

Prices at Chipotle, McDonald's and other fast-food giants in California are rising after a minimum wage hike went into effect.  "Chipotle said in an investor call Wednesday that prices at its nearly 500 California restaurants climbed 6% to 7% during the first week of April compared with last year, playing out across its menu," The Wall Street Journal reported Sunday. "The state isn't making it easy," Chipotle Chief Executive Brian Niccol reportedly said. CALIFORNIA'S $20 MINIMUM WAGE FOR FAST-FOOD WORKERS G ...

Can the best get even better?In the book Algorithms to Live By, I was exposed to a concept that improved my ability to make decisions -- the "explore-exploit trade-off." I'll spare you the nerdy details. But I'm at the stage of life where I should be exploring things. Instead, I keep exploiting (ordering) the same chicken burrito from Chipotle Mexican Grill (CMG 2.41%) over and over because it's just so good. Why explore the menu further?Chipotle does a good job making my burrito. But that's not the only th ...

A billionaire's investment goals are often noteworthy, but investors should consider their own situation before buying the same stocks.Investors often like to follow the investment advice of billionaires. The moves of such famous investors as Warren Buffett receive significant press coverage and can sometimes be a helpful source of stock ideas.However, investing is not so simple, and Bill Ackman's top two investments serve as an example. In his fund, Pershing Square Capital Management, Ackman invests 36% of ...

This closely watched investor is a fan of retail-based enterprises.Due to laws and regulations overseen by the Securities and Exchange Commission (SEC), large asset managers are required to publicly disclose their equity positions within 45 days of a quarter's end. For the retail investor, this is a potential gold mine of possible stock ideas.One well-known hedge fund manager, Bill Ackman, who heads Pershing Square Capital Management, is closely watched. His track record has made him somewhat of an investin ...

Chipotle's industry-leading growth and profitability show why the stock trades at an expensive valuation.Share prices of Chipotle Mexican Grill (CMG 2.27%) rose to new highs following another strong earnings report. In the first quarter, the company's revenue and earnings beat the Street's estimates, leading analysts at Baird to bump their price target.The firm maintained an outperform (buy) rating on the shares and raised the 12-month price target from $3,250 to $3,500, or just under 10% higher than the cu ...

This Is How Much Chipotle Stock Is Up Since Its Worst Era Ever marcnorman / iStock Editorial via Getty Images On what is a decidedly down day in the markets, Chipotle (NYSE: CMG) stock managed to buck the negative trend. Despite losses in the Dow Jones Industrial Average, Nasdaq and S&P 500, shares of the fast-casual retailer soared nearly 7% on the day to above the $3,000 level. Investors rewarded CMG for raising its full-year guidance owing to rising foot traffic that continues to blow away the competit ...

Financial Performance - Total revenue for Q1 2024 was $2,701,848, a 14.0% increase from $2,368,580 in Q1 2023[7] - Net income for Q1 2024 was $359,287, compared to $291,644 in Q1 2023, representing a 23.2% increase[7] - Earnings per share (EPS) for Q1 2024 were $13.09 (basic) and $13.01 (diluted), up from $10.56 and $10.50 respectively in Q1 2023[7] - Total revenue for Q1 2024 increased by 14.1% to $2.7 billion compared to $2.37 billion in Q1 2023[60] - Net income for the three months ended March 31, 2024, was $359.3 million, compared to $291.6 million for the same period in 2023, reflecting an increase of about 23%[7] - Basic earnings per share for Q1 2024 was $13.09, up from $10.56 in Q1 2023, representing a growth of 24.3%[51] - Diluted earnings per share increased by 23.9% to $13.01, reflecting a $0.36 after-tax impact from increased legal reserves[60] Operating Costs and Expenses - Restaurant operating costs increased to $2,260,556 in Q1 2024 from $2,000,970 in Q1 2023, with food, beverage, and packaging costs rising to $779,076[7] - Restaurant operating costs as a percentage of total revenue decreased to 72.5% in Q1 2024 from 74.4% in Q1 2023, benefiting from sales leverage[63] - Labor costs increased by 13.0% to $659.5 million, representing 24.4% of total revenue, with a significant impact from California's minimum wage increase to $20 per hour[70] - General and administrative expenses rose by 37.9% to $204.6 million, accounting for 7.6% of total revenue[75] - Total stock-based compensation expense for Q1 2024 was $36,681, compared to $20,670 in Q1 2023, indicating an increase of 77.5%[43] Cash Flow and Investments - Cash provided by operating activities was $569,234 in Q1 2024, compared to $455,036 in Q1 2023[14] - Cash provided by operating activities increased to $569.2 million for the three months ended March 31, 2024, up from $455.0 million in the same period of 2023, marking a growth of approximately 25%[86] - Cash, cash equivalents, and restricted cash at the end of Q1 2024 were $753,532, compared to $434,860 at the end of Q1 2023[14] - As of March 31, 2024, the company had a cash and marketable investments balance of $2.1 billion, with an additional $76.0 million in non-marketable investments[83] - Cash used in investing activities was $301.0 million for the three months ended March 31, 2024, compared to $235.5 million in the same period of 2023, indicating an increase of approximately 28%[86] Restaurant Operations - As of March 31, 2024, Chipotle operated 3,479 restaurants, including 3,411 in the U.S. and 68 internationally[17] - The company opened 47 new restaurants in Q1 2024, including 43 with a Chipotlane, and plans to open approximately 285-315 new restaurants in 2024[64] - Comparable restaurant sales rose by 7.0%, driven by higher transactions (5.4%) and an increase in average check (1.6%) for the three months ended March 31, 2024[61] - Digital sales accounted for 36.5% of total food and beverage revenue in Q1 2024[61] Liabilities and Equity - The Chipotle Rewards liability increased to $47,324 in Q1 2024 from $39,214 in Q1 2023, indicating growth in customer engagement[26] - Revenue recognized from gift card redemptions was $44,812 in Q1 2024, up from $38,878 in Q1 2023[23] - The accrued legal liability balance was $21,587 as of March 31, 2024, up from $7,640 as of December 31, 2023[54] - The company had $399,098 authorized for repurchasing shares of common stock as of March 31, 2024[41] - The acquisition of treasury stock in Q1 2024 amounted to $27,005, down from $126,709 in Q1 2023, indicating a decrease of approximately 78.7%[14] Tax and Legal Matters - The effective income tax rate decreased to 22.0% for Q1 2024 from 22.5% in Q1 2023, primarily due to increased tax benefits related to option exercises and equity vesting[47] - The effective income tax rate for the three months ended March 31, 2024, was 22.0%, a decrease from 22.5% for the same period in 2023[47] Risks and Future Outlook - The company is exposed to commodity price risks, which could adversely affect results if ingredient prices increase and menu prices do not adjust accordingly[90] - The company expects to generate positive cash flow for the foreseeable future, assuming no significant declines in comparable restaurant sales[85] - The company plans to utilize cash flow from operations for capital investments in new restaurant construction and share repurchases, with $399.1 million remaining available for share repurchases[83] - The company has limited foreign currency exchange risk as the majority of operations and investments are conducted in the U.S.[92]

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 ...