Chipotle (NYSE:CMG) stock is in the news Thursday after the Mexican fast food chain announced plans to increase portion sizes to keep customers coming back.
A study of Chipotle restaurants in New York City showed a wide variance in portion sizes offered to customers. Chipotle noticed this and is dedicating $50 million to ensuring proper training and generous portion sizes at its locations.
Chipotle Chief Financial Officer Jack Hartung said the following about this initiative in a statement to Bloomberg:
“We’re telling our teams, listen, we don’t want you to be skimping on portions. If you’re not sure whether to go a little more or a little less, go a little more.”
CMG Stock Jumps on Earnings
Chipotle is taking these actions on portion sizes after posting a strong earnings report for the second quarter of the year. That includes adjusted EPS of 34 cents on revenue of $2.97 billion. Both of these are above Wall Street’s estimates of 31 cents per share and revenue of $2.94 billion.
CMG stock is slipping 1.5% on Thursday alongside its portion size plans and despite its Q2 earnings beats. However, the stock is still up 13.7% since the start of the year.
Trading activity today has more than 10 million shares of CMG stock changing hands. That’s closing in on its daily average trading volume of about 16.6 million shares.
Investors will want to stick around for more of the most recent stock market stories below!
We have all of the hottest stock market news traders need to know about on Thursday! A few examples include what’s happening with shares of 2U (NASDAQ:TWOU), Concentra Group (NYSE:CON) and Southwest Airlines (NYSE:LUV) stock today. All of this info is ready to go at the links below!
More Stock Market News for Thursday
- TWOU Stock Alert: 2U Plunges on Ch. 11 Bankruptcy Filing
- CON Stock: 7 Things to Know as Concentra Group Starts Trading Today
- Goodbye Open Seating! Southwest Airlines Announces Major Policy Shift.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
