Topic: How To Invest

Stock Pickers Digest Hotline – Friday, April 26, 2019

Article Excerpt

CHIPOTLE MEXICAN GRILL INC., $676.79, symbol CMG on New York, is a Mexican restaurant chain, headquartered in Denver. It charges slightly higher prices than fast-food competitors, but it offers better quality food, including naturally raised meat, and superior decor and service. In the three months ended March 31, 2019, sales rose 13.9%, to $1.31 billion from $1.15 billion a year earlier. The gain came from 15 restaurant openings and higher restaurant sales. Same-restaurant sales at its 2,504 locations rose 9.9%. Digital sales grew 100.7% and accounted for 15.7% of the quarter’s overall sales. In the latest quarter, earnings rose 60.6%, to $95.5 million, or $3.40 a share, from $59.4 million, or $2.13. Chipotle has implemented highly publicized food-safety training for its employees. In addition, the company is using improved digital marketing and menu innovation to win back its customers and restore its sales. However, that turnaround remains ongoing. OUR RECOMMENDATION: Chipotle is still a hold. Chipotle Mexican Grill’s recent coverage Hotline for March 15, 2019 …