Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, October 23, 2015

Article Excerpt

CHIPOTLE MEXICAN GRILL, $649.72, symbol CMG on New York, is a Denver-based Mexican restaurant chain. It charges slightly higher prices than fast food companies but offers better quality food, including naturally raised meat, and superior decor and service. The stock dropped almost 7% this week after Chipotle reported slowing sales growth and earnings that failed to meet expectations. In the three months ended September 30, 2015, the company’s sales rose 12.2%, to $1.22 billion from $1.08 billion a year earlier. Its restaurants attracted more customers during the quarter, pushing up same-restaurant sales by 2.6%. However, that was below the 4.3% increase in the preceding quarter and well short of a 19.8% jump a year earlier. Earnings gained 10.6%, to $144.9 million, or $4.59 a share, from $130.8 million, or $4.15, but that missed the consensus forecast of $4.64. Earnings growth slowed as the company faced higher wage costs and increased marketing and promotion expenses in a competitive market. Chipotle is bringing in…