Chipotle posted mixed first quarter 2014 results with earnings of
$2.64 missing the Zacks Consensus Estimate, which we believe was
due to higher expenses. However, earnings increased year over year
owing to stronger top line. Revenues surpassed the consensus mark
and increased 24.4% year over year, thanks to higher comps and unit
expansion. Comps grew year over year as well as sequentially driven
by higher traffic. The company has been witnessing a fairly stable
traffic trend over the past few years driven by its strong market
position, new menu launches and increased media exposure. However,
the company's decision to raise menu prices can negatively impact
traffic. This price hike comes in the wake of higher commodity
costs that have pressurized margins. As a matter of fact, total
operating expenses during the quarter surged 26.7% due to higher
food, beverage and packaging and other operating expenses, thereby
Founded in 1993 and based in Denver, CO, 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 Mar 31, 2014, Chipotle
Mexican Grill operated 1,614 restaurants globally.
Chipotle Mexican Grill, Inc. (CMG): Read the Full
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
CHIPOTLE MEXICN (CMG): Free Stock Analysis
To read this article on Zacks.com click here.