Chipotle Mexican Grill, Inc.NYSE
Chiptopia's Incremental Economics Should Jumpstart Sales And Profits
Long Hill Road Capital • 17 Comments
Long Hill Road Capital • 17 Comments
Chipotle: Its Market Is Smaller Than Investors Believe, Valuation Implies 30%+ Downside
Hayden Cole • 61 Comments
Hayden Cole • 61 Comments
Today, 2:46 AM
- Chipotle (NYSE:CMG) has turned to high-profile investment bankers and lawyers to help defend itself against activist investor Bill Ackman, although he hasn't yet publicly made any demands since becoming Chipotle's second-largest shareholder last month.
- According to Reuters, Goldman Sachs and Morgan Stanley, as well as law firm Wachtell, Lipton, Rosen & Katz, are now working for the U.S. restaurant chain.
Yesterday, 12:38 PM
- Chipotle (CMG -0.6%) launched its Tasty Made business today, with a restaurant opening in Lancaster, Ohio complete with a drive-through window.
- The company is keeping it simple with the new chain by only selling burgers, fries and shakes.
- Similar to Five Guys and In-N-Out Burger, burger patties at Tasty Made are cooked fresh, instead of using the frozen fast-food model. The new concept isn't anything for Shake Shack (NYSE:SHAK) and Habit Restaurants (NASDAQ:HABT) to worry about just yet, but the chains will keep a watch on the Tasty Made roll-out.
- Now who in Lancaster can tell us how a Tasty Made burger rates?
Wed, Oct. 26, 8:34 AM
- Execs with Chipotle (NYSE:CMG) tried to accentuate the positive during the firm's conference call yesterday.
- The company plans to market chorizo pretty hard after the new menu option accounted for 7% of entree sales in Q3. Repeat traffic from chorizo lovers is expected in Q4.
- There is also still plenty of upside seen with digital ordering as the chain tests out a new line at stores.
- Challenges that are still in front of the company outside of the traffic falloff include the higher level of wages and the huge spike in avocado prices.
- Chipotle will pull the plug on the ShopHouse concept after seeing disappointing results.
- Chipotle earnings call transcript
- Previously: Chipotle Mexican Grill misses by $1.03, misses on revenue (Updated) (Oct. 25)
- Previously: Comparable sales fall 22% at Chipotle (Oct. 25)
- CMG -3.37% premarket to $392.00.
Tue, Oct. 25, 4:22 PM
- Chipotle (NYSE:CMG) misses estimates with a 21.9% drop in comparable sales for Q3. Analysts expected a decline of 18%.
- Comparable transactions were down 15% as promotional activity accounted for the discrepancy between the two marks.
- Restaurant-level operating margin sank to 14.1% from 28.3% a year ago.
- Food costs as a percentage of sales rose 210 bps to 35.1%.
- G&A expenses were up 180 bps to 7.6%, due to the lower level of sales.
- Chipotle says its expects comparable restaurant sales to fall in the low single-digits for Q4. The chain starts to lap the period from last year when food contamination incidents occurred, which will help the comparison.
- The company expects to open 220 to 235 restaurants this year.
- Previously: Chipotle Mexican Grill misses by $1.32, misses on revenue (Oct. 25)
- CMG +0.69% AH to $407.50.
Tue, Oct. 25, 4:17 PM
Tue, Oct. 25, 10:01 AM
- Restaurant stocks are reeling after disappointing reports from Sonic (SONC -19.5%) and Brinker International (EAT -6.6%) to follow on some sluggish reads from other chains last week.
- The two companies operate in different restaurant categories, but both cited some of the same traffic and labor costs issues.
- Early decliners include Jack In The Box (JACK -3.4%), Wendy's (WEN -2.7%), Buffalo Wild Wings (BWLD -1.6%), Habit Restaurants (HABT -3.5%) and The Cheesecake Factory (CAKE -3.2%).
- Chipotle (CMG +0.2%) and Panera Bread (PNRA -2.1%) are next in line, with their earnings due later today after the market closes in what are highly-anticipated reports.
- Related ETF: BITE.
Mon, Oct. 24, 5:35 PM
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Wed, Oct. 19, 1:17 PM
- Barron's has introduced a tracking index of stocks favored by younger consumers.
- Though the combined performance on the group of 50 stocks smashed the returns of the S&P 500 over the last five years, this year it lags slightly so far.
- As expected, the price-earnings ratio of the Barron's Next 50 Index skews higher due to the focus on longer-term millennial growth.
- Some of the companies making the initial list are Amazon (NASDAQ:AMZN), Barnes & Noble Education (NYSE:BNED), Boston Beer (NYSE:SAM), Chipotle (NYSE:CMG), Etsy (NASDAQ:ETSY), GameStop (NYSE:GME), GoPro (NASDAQ:GPRO), GrubHub (NYSE:GRUB), Kate Spade (NYSE:KATE), Live Nation (NASDAQ:LIVE), Lululemon (NASDAQ:LULU), MasterCard (NYSE:MA), Match Group (NASDAQ:MTCH), Monster Beverage (NASDAQ:MNST), Shake Shack (NYSE:SHAK), Square (NYSE:SQ), and Yelp (NYSE:YELP).
- A millennial-focused ETF launched last spring, the Global X Millennial Thematic ETF (NASDAQ:MILN), has outperformed the S&P 500 Index over its brief history.
Tue, Oct. 18, 1:03 PM
- Chipotle (CMG -0.3%) could be suffering from a "permanent" loss of customers, according to a harsh assessment from Raymond James.
- The investment firm doesn't see comparable sales returning to prior levels and warns of further share deterioration.
- CMG is rated at Underperform by RJ.
- Shares of Chipotle are down 46% over the last year and bottomed out at $384.77 in August.
- Looking for the flip side of the CMG argument? There's plenty of positive takes on Chipotle's future posted by Seeking Alpha contributors.
Mon, Oct. 17, 11:12 AM
- Nomura CMG)%3A+Cutting+SSS+Ests+And+PT+Based+On+Checks+-+Nomura/12136869.html" target="_blank">keeps a Neutral rating on Chipotle (CMG -1.8%) ahead of the company's Q3 earnings report.
- The investment reduces estimates on Chiptole after digesting channel checks. The new forecast for Q3 same-store sales growth goes to -19.5% vs. -17.9% consensus.
- The price target on CMG is dropped to $372 from $405.
- Chipotle is due to spill numbers on October 25.
Fri, Oct. 14, 2:54 PM
- Piper Jaffray is out with the results of its annual Taking Stock With Teens Survey. The top brands listed by the 10K teens included in the survey are posted below.
- Top clothing brands: Nike (NYSE:NKE) 29%, American Eagle Outfitters (NYSE:AEO) 9%, Forever 21 5%, Ralph Lauren (NYSE:RL) 4%, Urban Outfitters (NASDAQ:URBN) 3%.
- Top handbag brands: Michael Kors (NYSE:KORS) 34%, Kate Spade (NYSE:KATE) 19%, Coach (NYSE:COH) 10%, Louis Vuitton (OTCPK:LVMHF) 5%, Longchamp Vera Bradley (NASDAQ:VRA) 3%.
- Top footwear brands: Nike 51%, Vans (NYSE:VFC) 9%, Converse 7%, Adidas (OTCQX:ADDYY) 6%, Steven Madden (NASDAQ:SHOO) 2%.
- Top restaurant chains: Starbucks (NASDAQ:SBUX) 14%, Chipotle (NYSE:CMG) 11%, Chick-fil-A 10%, Taco Bell (NYSE:YUM) 3%, Panera Bread (NASDAQ:PNRA) 3%, McDonald's (NYSE:MCD) 3%, Olive Garden (NYSE:DRI) 3%.
- Nothing earth-shattering in the tech results, dominating teen mindspace are Snapchat (Private:CHAT), YouTube, Instagram and Netflix (NASDAQ:NFLX).
Tue, Oct. 4, 5:06 AM
- Don't spill your coffee in excitement, but it's National Taco Day today.
- The holiday coincides with the introduction today by Chipotle (NYSE:CMG) of chorizo in all U.S. restaurants. Chipotle's summer loyalty program and several promotions aimed at kids ended in September, with the restaurant operator desperately looking to return to some normal pricing.
- The intense competitive cadence from Chipotle has impacted other Mexican food chains such as Taco Bell (NYSE:YUM), Del Taco (NASDAQ:TACO), El Pollo Loco (NASDAQ:LOCO), Chevy's Fresh Mex (private), and Qdoba (NASDAQ:JACK). That group is also looking to improve their average ticket at restaurants through higher prices.
Mon, Oct. 3, 9:08 AM
- Chipotle (NYSE:CMG) announces it will roll out chorizo in all U.S. restaurants after a successful test run in five markets.
- The addition of the spicy sausage to the Chipotle menu has already been a talking point for bullish-leaning analysts covering the restaurant stock.
- Chipotle closed at $423.50 on Friday vs. a 52-week range of $384.77 to $757.00.
- Source: Press Release
Tue, Sep. 27, 1:41 PM
- Chipotle (CMG -0.2%) announces it will use a special antimicrobial disinfectant solution produced by PURE Bioscience (NASDAQ:PURE) in all U.S. restaurants.
- The disinfectant is expected to be productive in preventing notovirus outbreaks and bacteria contamination.
- The development is doing wonders for the shares of microcap Pure Bioscience.
- PURE +14.57% to $1.14.
Wed, Sep. 21, 3:40 PM
- Chipotle (CMG -0.2%) launched a new marketing campaign today focused on food safety.
- The company has online and print advertising running aimed at convincing consumers that the restaurant chain's food is safe.
- Same-store sales have remained in a devastating trend for Chipotle since an e. Coli outbreak last year.
- Previously: Chipotle slips below $400 after Goldman warns on search slump (Sept. 21)
- Previously: Chipotle still pushing free drinks for students (Sept. 19)
Wed, Sep. 21, 8:29 AM
- Goldman Sachs cuts targets on Chipotle (NYSE:CMG) after factoring in a drop in web/app traffic in August as Chiptopia enthusiasm died down considerably (49.7 search interest index vs. 77.7 in July via ZeroHedge).
- GS sees a FQ4 comp of -21.4%, compared to its prior forecast of -18.4% and the consensus estimate of -17.7%.
- Shares of Chipotle are down 0.36% premarket to $398.98.