Strong Chipotle Sales Have CMG Stock Soaring

by Christopher Freeburn | January 31, 2014 11:49 am

Strong Chipotle Sales Have CMG Stock Soaring

Chipotle Mexican Grill (CMG[1]) reported sharply higher fourth-quarter earnings[2], sending CMG stock surging more than 13% in Friday morning trading.

chipotle185 Strong Chipotle Sales Have CMG Stock Soaring[3]
Source: Flickr[4]

CMG stock jumped after the restaurant chain operator posted a quarterly profit of $79.6 million, up about 30% from $61.4 million in the year-ago quarter. EPS came in at $2.53 a share, narrowly topping the profit of $2.52 per share of CMG stock that analysts had expected, Bloomberg noted.

During the fourth-quarter, CMG said it generated sales of $844.1 million, up 21% year-over-year. That also easily exceeded the sales of $826.3 million that Wall Street had anticipated.

Looking forward, CMG predicted a rise in same-store sales in the “low- to mid-single digit” percentage range for 2014.

During a conference call, CMG CFO Jack Hartung noted that prices for menu ingredients were rising, making it “likely” that CMG would raise prices during the third quarter of this year[5].

On Thursday, prior to the release of results, CMG stock closed at $493.96 a share. CMG stock has gained more than 60% over the past year.

Endnotes:
  1. CMG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMG
  2. sharply higher fourth-quarter earnings: http://www.businessweek.com/news/2014-01-30/chipotle-profit-rises-30-percent-as-more-diners-visit-restaurants
  3. [Image]: http://investorplace.com/wp-content/uploads/2012/11/chipotle185.jpg
  4. Flickr: http://www.flickr.com/photos/z0/5115793807/lightbox/
  5. would raise prices during the third quarter of this year: http://investorplace.com/2014/01/brace-chipotle-prices-may-get-even-higher/#.UuvXGnlhOf0

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