Chipotle Mexican Grill, Inc. (CMG) - NYSE
  • Today, 1:17 PM
    • Chipotle (CMG +0.6%) will open its first hamburger restaurant this fall when a Tasty Made shop opens in Lancaster, Ohio.
    • The new concept will focus on a limited menu featuring burgers, fries, and milkshakes, reports Tasty Made will use the "Responsibly Raised" brand of beef from animals raised without the use of antibiotics or added hormones.
    • "We think there’s great strength in that original fast food model and wanted to create a restaurant built around that," says Chipotle CEO Steve Ells.
    • Pricing and expansion plans of the Tasty Made chain will be of interest to hamburger chains McDonald's (NYSE:MCD), Sonic (NASDAQ:SONC), Shake Shack (NYSE:SHAK), Habit Restaurants (NASDAQ:HABT), Burger King (NYSE:QSR), and Wendy's (NASDAQ:WEN).
    | Today, 1:17 PM | 44 Comments
  • Tue, Jul. 26, 10:27 AM
    • A harsh view on the restaurant sector from Stifel Nicolaus is based in part on its view that a U.S. recession could occur within nine months. The note from the firm also warns on a loss of pricing power by restaurant operators.
    • Early Q2 reporters Starbucks, McDonald's (MCD -3.9%), and Chipotle (CMG -1.8%) already set a negative tone for the sector by missing estimates, but Stifel's downgrade on 11 different restaurant chains is taking the gloom to a new level.
    • 50 of the 55 publicly-traded restaurant stocks with a market cap of over $50M are in negative territory today. Leading decliners are Noodles (NDLS -17.7%), Chuy's Holdings (CHUY -9.3%), BJ's Restaurants (BJRI -6.2%), Sonic (SONC -3.8%), Bojangles (BOJA -3%), Dave & Buster's Entertainment (PLAY -3.6%), and Red Robin Gourmet Burgers (RRGB -7%).
    • Investors are betting that pizza delivery chains won't be impacted by the general trend of sluggish traffic. Both Domino's Pizza (DPZ -0.6%) and Papa John's International (PZZA -1.7%) are up over 10% over the last few weeks.
    • Previously: Restaurant stocks on watch after McDonald's miss and Stifel cuts (July 26)
    • Previously: U.S. restaurant traffic down 3.5% in June (July 15)
    • Related ETF: BITE.
    | Tue, Jul. 26, 10:27 AM | 23 Comments
  • Tue, Jul. 26, 8:19 AM
    • Stifel Nicolaus sours on the restaurant market with sweeping downgrades across different chains. The cautious stance from Stifel, along with a miss by McDonald's on U.S. same-store sales, could put some pressure on the sector today.
    • Stifel's cuts are listed below.
    • Zoe's Kitchen (NYSE:ZOES) to Hold from Buy.
    • Texas Roadhouse (NASDAQ:TXRH) to Hold from Buy.
    • Del Frisco's (NASDAQ:DFRG) to Hold from Buy.
    • Chuy's Holdings (NASDAQ:CHUY) to Hold from Buy.
    • Dave & Buster's (NASDAQ:PLAY) to Hold from Buy.
    • Panera Bread (NASDAQ:PNRA) to Sell from Hold.
    • Cheesecake Factory (NASDAQ:CAKE) to Sell from Buy.
    • Chipotle (NYSE:CMG) to Sell from Hold.
    • El Pollo Loco (NASDAQ:LOCO) to Hold from Buy.
    • Related ETF: BITE.
    | Tue, Jul. 26, 8:19 AM
  • Fri, Jul. 22, 2:06 PM
    • JPMorgan upgrades Chipotle (CMG +4.9%) to Overweight from Neutral after digesting the company's Q2 earnings report.
    • The firm thinks comparable store sales have not bottomed out for Chipotle and that the focus will return to profitability. Earnings growth will return to "normal" around FY18, estimates JP.
    • A price target of $510 is derived by taking 25x FY20 EPS of $26 discounted back at 10% and adding back in FY19 cash.
    • Previously: Promotions ravage margins at Chipotle (July 21)
    • Previously: Chipotle talks Chiptopia and Chorizo on conference call (July 21)
    | Fri, Jul. 22, 2:06 PM | 14 Comments
  • Thu, Jul. 21, 7:54 PM
    • Chipotle (NYSE:CMG) is using its Chiptopia loyalty program to generate a massive amount of data that it hopes to leverage down the road, according to execs on today's earnings call.
    • The Chipotle team maintains the program is seeing early success and has cut into the steep pace of comparable-store sales losses (200 bps to 300 bps of improvement from Q2's -24% mark). Beyond the extra sales, Chipotle now has 3.2M customers to market to directly through the program.
    • CEO Steve Ellis said it's "very very likely" that Chipotle will extend Chiptopia or create a permanent loyalty program in September.
    • Another strategic move from Chipotle aimed at resurrecting traffic is the introduction of chorizo. The menu addition is expected to reach all Chipotle stores by the end of the year.
    • Chipotle earnings call webcast
    • CMG -1.57% AH to $411.50.
    | Thu, Jul. 21, 7:54 PM | 13 Comments
  • Thu, Jul. 21, 4:36 PM
    • Chipotle (NYSE:CMG) reports comparable restaurant sales fell 23.6% in Q2. Transactions were down 19% as promotional activity accounted for the discrepancy between the two marks.
    • Restaurant-level operating margin plunged to 15.5% from 28.0% a year ago.
    • Food costs as a percentage of sales rose 110 bps to 34.2%. Most chains are seeing a benefit from lower commodity costs, but Chipotle has lost some scale.
    • Chipotle says Q3 is off to a "nice start" in a very non-specific update. By nice start, Chipotle means a 200 bps to 300 bps sequential improvement in comp sales which still puts it at around -20%. The company did tip off that it anticipates opening 220 to 235 restaurants this year.
    • Previously: Chipotle Mexican Grill misses by $0.06, misses on revenue (July 21)
    • CMG -1.93% AH to $410.00.
    | Thu, Jul. 21, 4:36 PM | 52 Comments
  • Thu, Jul. 21, 4:13 PM
    • Chipotle Mexican Grill (NYSE:CMG): Q2 EPS of $0.87 misses by $0.06.
    • Revenue of $998.4M (-16.8% Y/Y) misses by $51.6M.
    • Shares -0.7%.
    • Press Release
    | Thu, Jul. 21, 4:13 PM | 17 Comments
  • Wed, Jul. 20, 5:35 PM
    | Wed, Jul. 20, 5:35 PM | 13 Comments
  • Tue, Jul. 19, 11:11 AM
    • CLSA thinks Chipotle (CMG +1.1%) can leverage the data it compiled during the Chiptopia promotion to help drive more sales from mobile. Chiptopia is the summer rewards from the restaurant chain for U.S. customers.
    • The investment firm pushes off long-term concerns on Chipotle margins to keep the focus on a traffic recovery.
    • From the CLSA note: "Our $460 target price (unchanged) is based on a 30x FY18CL EPS, discounted at 8% (effective 28x multiple). We view FY18 as a more normalized operating environment."
    • CLS upgraded Chipotle to Outperform.
    | Tue, Jul. 19, 11:11 AM | 3 Comments
  • Mon, Jul. 18, 9:37 AM
    • A limited channel check from BTIG indicates sequential improvement in traffic growth at Chipotle (CMG -0.2%).
    • A scan of a New York location indicated a 9% improvement in June from May, an acceleration from the 3% to 5% pickup in May from April. The read from BTIG is that the crucial turnaround in momentum could be upcoming.
    • BTIG analyst Peter Saleh dissects Chipotle traffic: "We believe Chipotle experienced its seasonal spring sales lift (6%-7%) in June this year, two months later than usual. We are prudently modeling 2Q16 comps to be down (20.0%), implying a traffic decline of ~(15%) in the quarter, but are optimistic for some modest outperformance."
    • BTIG is in with a Neutral rating on Chipotle.
    • Chipotle is due to report Q2 earnings on Thursday after the close.
    | Mon, Jul. 18, 9:37 AM | 18 Comments
  • Fri, Jul. 15, 2:24 PM
    • Same-store sales growth in the restaurant sector fell 1.1% in June, according to Black Box Intelligence.
    • Same-store traffic was down 3.5% Y/Y during the month and 3.0% for all of Q2. The worst numbers were posted in the Southwest part of the U.S. That data point, along with the recent issues at Taco Bell (weak Q2 U.S. sales) and Chipotle (survey results), raises questions on how Chuy's Holdings (NASDAQ:CHUY), Qdoba (NASDAQ:JACK), and Del Taco (NASDAQ:TACO) fared during the quarter.
    • The weak month of same-store sales growth also puts a spotlight on McDonald's (NYSE:MCD) and Starbucks (NASDAQ:SBUX) to see if they matched their recent performances in the U.S.
    • Earlier sector news: Restaurants see some relief on commodity costs (July 15)
    • Related ETF: BITE.
    | Fri, Jul. 15, 2:24 PM | 9 Comments
  • Fri, Jul. 15, 8:30 AM
    • Morgan Stanley downgrades Chipotle (NYSE:CMG) to Equal-weight from Overweight on its view that it could take years for the restaurant chain's sales to return to peak levels.
    • Analyst John Glass bases the negative view off a survey of customers that indicated 25% of Chipotle customers have stopped going or reduced their frequency of visits a full six months after the last confirmed food safety incident.
    • "The key reason for not going back is still food safety (33%), but nearly a quarter say they've just found other restaurants they like better," writes Glass.
    • MS takes its price target on Chipotle down to $405 from $500.
    • CMG -2.15% premarket to $409.00.
    | Fri, Jul. 15, 8:30 AM | 14 Comments
  • Thu, Jul. 14, 9:34 AM
    • Niantic Labs appears set to allow businesses to officially sponsor locations for in-game activities for Nintendo's (OTCPK:NTDOY, OTCPK:NTDOF) Pokémon, according to media reports.
    • That's not news to followers of Reddit posts which dug deep into the Pokémon code to discover bits with "McDonald's" already in it (see code here)
    • Though the monetization of the Pokémon phenomenon was widely expected, it also has deeper implications for retailers even beyond trying to scrap for foot traffic through establishing Lure modules, PokeStops, and Pokemon Gyms. Pokémon may come and go. The intersection of real-world shopping and augmented reality games is probably here to stay.
    • Companies with an eye on augmented reality and location-based entertainment as it relates to increasing traffic run far and wide. Restaurants (QSR, SBUX, MCD, CMG, WEN, NDLS, PNRA, DNKN), store chains (GPS, AEO, ANF, TGT, ROST, DG, DLTR), and movie theaters (AMC, CKEC, IMAX, CNK, RGC) come to mind.
    • Google (GOOGL, GOOG) is also keeping track of all the Pokémon developments as it served as an incubator for Niantic Labs up until the Alphabet creation. Recode says it's unclear what stake that Google still has in the software developer.
    • Pokémon news on Seeking Alpha
    | Thu, Jul. 14, 9:34 AM | 26 Comments
  • Wed, Jul. 13, 11:07 AM
    • Shares of Chipotle (CMG +2%) are higher after Sequoia Fund takes a position in the restaurant chain.
    • Sequoia says it went through a rigorous due diligence effort while delving into Chipotle's food safety program before pulling the trigger on the investment.
    • "While we expect Chipotle to suffer through a slow and bumpy recovery, we believe the company has an opportunity to more than double its U.S. store base over time at terrific unit economics," points out Sequoia .
    • Sequoia Fund letter to shareholders (.pdf)
    | Wed, Jul. 13, 11:07 AM | 8 Comments
  • Wed, Jul. 13, 12:01 AM
    • In a letter to shareholders, Sequoia Fund -- the second-biggest shareholder in Valeant (NYSE:VRX) -- says it exited that position completely by mid-June.
    • The Fund notes that after longtime CEO and co-manager Robert Goldfarb retired in March, "new leadership elected to sell our position." Valeant once made up 30% of Sequoia's portfolio; the company "was our largest position to start the year and its 80% decline through June 30 badly penalized our results."
    • The Fund also said it exited its position in Idexx Laboratories (NASDAQ:IDXX), "a wonderful stock for us over the past 13 years"; and got out of smaller positions, in Allergan (NYSE:AGN) and Cabela's (NYSE:CAB).
    • Meanwhile, it bought Carmax (NYSE:KMX), Chipotle Mexican Grill (NYSE:CMG), Charles Schwab (NYSE:SCHW), and Wells Fargo (NYSE:WFC).
    | Wed, Jul. 13, 12:01 AM | 268 Comments
  • Thu, Jul. 7, 10:23 AM
    • Shares of Chipotle (NYSE:CMG) are down just 1.7% after a single report of food poisoning in Manhattan drove some early selling (algos?). The stock is still the worst performer in the restaurant sector on the day.
    • The incident appears isolated and perhaps unrelated at the moment, but is an indicator of the sensitivity of investors to the food poisoning issue.
    • The focus on Chipotle will shift toward Q2 earnings before too long with the report now only two weeks out. The impact of promotions on margins and the early look at Q3 traffic will be critical.
    • Previously: Chipotle lower amid anecdotal Manhattan food poisoning report (July 7)
    | Thu, Jul. 7, 10:23 AM | 19 Comments
Company Description
Chipotle Mexican Grill, Inc. develops and operates fast-casual, fresh Mexican food restaurants throughout the U.S., which serve a focused menu of burritos, tacos, burrito bowls and salads. The company also has restaurants in Canada, England, France and Germany. The company was founded by Steve... More
Sector: Services
Industry: Restaurants
Country: United States