Costs rise for Chipotle

Article Excerpt

CHIPOTLE MEXICAN GRILL $309.44 (New York symbol CMG; TSINetwork Rating: Speculative) (303-595-4000; www.chipotle.com; Shares outstanding: 31.8 million; Market cap: $9.9 billion; No dividends paid) reported revenue of $571.6 million in the three months ended June 30, 2011. That’s up 22.4% from $466.8 million a year earlier. The company’s restaurants attracted more customers during the quarter. That pushed up its same-restaurant sales by 10.0%. Earnings per share rose 10.1%, to $1.63 from $1.48, on fewer shares outstanding. That’s mainly because the company’s food costs continue to rise, and it’s paying higher labour costs after it replaced illegal workers in the wake of a U.S. government probe of illegal immigrant hiring. Chipotle is still a hold. hold…