Chipotle Mexican Grill, Inc. (CMG): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
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.

Overview:

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 Research Report

CHIPOTLE MEXICN (CMG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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