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The newest base is second stage, which means Chipotle stock could still have room to run. Leading stocks often make their biggest advance out of such early-stage bases. After a 19% gain from the May breakout, the stock launched a new flat base off a May 26 high. It cleared a 1,087.10 buy point on July 6 and then went on to advance 27% before turning south Sept. 3 with the broader market.
The new restaurant, for pickup and delivery orders only, is called Chipotle Digital Kitchen.
Get this delivered to your inbox, and more info about our products and services. After rebounding to new highs in mid-February, shares slumped nearly 56% to a March 18 low during the coronavirus market crash. On the revenue front, growth forex economic calendars stayed in the double digits but shrank 13% in 2016. Sales rebounded to 15% growth in ’17, slowed to 9% in ’18, and stepped up to 15% last year. This time, Chipotle stock rallied 224% from its October 2012 low to its August 2015 peak.
Chipotle’s stock has risen 30% this year, giving it a market value of $50.1 billion. The company is expected to report its third-quarter earnings Oct. 26. The company did not share how much menu prices will rise as a result of the decision. The increase meant some customers would pay more than $1 more for their entrees once the price increase took effect in August of the same year.
A 49 Earnings Per Share Rating reflects a five-year earnings growth rate of 14%, due to the ’16 drop. Chipotle stock ran into trouble again, languishing more than two years amid reports of seemingly recurring E. The stock then recovered more than 250% to a new high in February 2020, before a steep drop due to the coronavirus crash. On Nov. 11, Chipotle announced it’s opening its first “ghost kitchen” to handle just digital orders, in New York.
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Chipotle CEO Brian Niccol called attention to the loyalty of the fast-food joint’s fans during an earnings call in July. As of Tuesday morning, a chicken burrito bowl from a Chipotle location in Brooklyn costs about $10.95 without any extra guac or queso. Many of the brokerage firms who provide Zacks data ask that we keep their identity confidential. Of the 28 recommendations deriving the current ABR, 18 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 64.29% and 7.14% of all recommendations. A month ago, Strong Buy made up 64.29%, while Buy represented 7.14%.
- The company was founded by Steve Ells in 1993 and is headquartered in Newport Beach, CA.
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- Despite apparently rising costs, Chipotle’s 2023 second quarter report saw a 13.6% increase in revenue year over year, bringing the overall number to $2.5 billion.
- The increase meant some customers would pay more than $1 more for their entrees once the price increase took effect in August of the same year.
But it tumbled 76% over the next 10 months as the 2008 recession took a bite out of the restaurant industry. Then from late 2008 to April 2012, CMG stock set off on a sizzling 1,100% run. After the sustained period of high growth — not surprisingly — the pace began to slow. Shares fell 47% over the next six months, before coming back for another run to new highs. Though Chipotle is a household name today, it was still a budding chain just 20 years ago.
Research & Ratings Chipotle Mexican Grill Inc.(CMG)
Meanwhile, the company reported ~4% traffic growth, a clear outlier vs. the industry where traffic has been consistently negative since January. Finally, the company reported double-digit comparable sales growth in Q2, one of the better metrics reported among its peer group, with this translating to 2-year stacked comp sales growth of 22.6%. Digging into the results a little closer, Chipotle enjoyed lower food & beverage costs of 29.4% (down 100 basis points), with the benefit of higher menu pricing and lower avocado prices more than offsetting higher beef, dairy, salsa, beans, and rice costs. Meanwhile, labor also dipped 50 basis points year-over-year, with the benefit of sales leverage, partially offset by wage inflation. The result was that Chipotle’s restaurant-level margins improved 300 basis points on a two-year basis, with this being one of the best quarters for restaurant-level margins to date, despite peers struggling to hold the line.
Chipotle Mexican Grill (NYSE: CMG)
Laurie Schalow, Chipotle’s chief corporate affairs officer, attributed the change to the state of the economy, citing inflation as the culprit. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Prices for many goods and services are still rising but at a slower rate. The 12-month consumer price index rose 3.7% in August after climbing 8.3% a year earlier, according to the U.S. Meanwhile, commenters on a Reddit post in a Chipotle-focused board questioned whether the latest price hikes could push loyal customers to abandon the chain.
Hence, if we were to see the stock rally near the top of its range on a surprise beat in Q3 and vault back above $1,950 before year-end, I would view this as an opportunity to book more profits. This above trend would suggest that Chipotle is far less sensitive than the peer group and that looking at industry-wide traffic trends may be less helpful for predicting Chipotle’s upcoming results. This is because Chipotle indexes to higher-income consumers that are spending similarly or more, and even its lower-income guests seem to have gravitated back judging by its commentary, somewhat out an outlier vs. other retail brands. Therefore, I would argue that the setup to beat is much more challenging in Q3 than it was in Q2, suggesting a higher probability of Chipotle missing top and bottom line estimates of ~$2.48 billion. But Chipotle paused its price hikes as some customers pulled back on restaurant spending and ingredient costs stabilized. In April, CEO Brian Niccol said the chain had demonstrated its pricing power but would hold off on raising prices any more.
Industry Wide Trends
Chipotle Mexican Grill, Inc. engages in the development and operation of classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. It offers a focused menu of burritos, tacos, burrito bowls, and salads prepared using classic cooking methods. The company was founded by Steve Ells in 1993 and is headquartered in Newport Beach, CA.
Same-store sales overall jumped 8.3%, better than the 7.5% increase seen by Consensus Metrix. The fast-casual burrito chain reported better-than-expected Q3 results Oct. 21 after the close. Investors have been unsure what to expect from restaurants and other businesses as the Covid-19 pandemic continues to affect the U.S. economy. Chipotle confirmed to USA TODAY that consumers will soon see a hike in menu prices, the fourth such increase in just two years.
Chipotle’s net sales rose 13.6% to $2.51 billion in the second quarter compared to the same quarter a year prior, the company’s filing shows. A Chipotle spokesperson did not clarify the extent to which prices will rise or which menu items will become more expensive. It also remains unclear when the price hikes will go into effect. A burrito at Chipotle currently costs $11.10 in New York, the company’s website shows. Obviously, I could be wrong and Chipotle may once again beat its estimates with it just coming off a beat in Q2 despite the consumer’s wallets similarly strained in the previous period.