Chipotle posted strong fourth-quarter 2013 results beating the
Zacks Consensus Estimate for both earnings and revenues. Both the
parameters also increased year over year backed by higher comps
growth and unit expansion. Comps grew 550 bps year over year to
9.3% led by higher traffic. Going forward, we expect this trend to
continue driven by strong market position, new menu launches and
increased media exposure. We believe the company has compelling
growth drivers like the ShopHouse concept and a catering program to
sustain the revenue momentum. However, higher food costs and
increased marketing spending may hurt Chipotle's margins, going
ahead. A limited consumer spending environment is also concerning.
Thus, we remain Neutral on the stock.
Founded in 1993 and based in Denver, Colo., Chipotle Mexican
Grill Inc. (CMG) operates quick-casual and fresh Mexican food
restaurant chains in 35 states throughout the United States, the
District of Columbia and Ontario, Canada and the U.K. Chipotle
offers a focused menu of burritos, tacos, burrito bowls (a burrito
without the tortilla) and salads. Chipotle restaurants feature
free-range, hormone-free pork, natural chicken and other meat
products cooked through traditional methods and served in a unique
atmosphere. Chipotle classifies its restaurants as end-caps (at the
end of a line of retail chains), in-lines (in a line of retail
chains), free-standing units and others. As of Dec 31, 2013,
Chipotle Mexican Grill operated 1,595 restaurants globally.
Chipotle Mexican Grill, Inc. (CMG): Read the Full
CHIPOTLE MEXICN (CMG): Free Stock Analysis
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