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
Tue, Nov. 29, 12:46 PM
- SunTrust Robinson Humphrey says "dramatically lower" avocado prices could help lift profit at Chipotle (CMG -0.5%) this quarter and potentially into 2017.
- Food costs rose 210 bps to 35.1% of sales for Chipotle in Q3, due in part to avocado pricing.
- Analyst Jake Bartlett still has a Q4 EPS estimate of $0.95 for CMG vs. the Street consensus of $1.06.
- Source: Bloomberg
Fri, Nov. 18, 7:38 AM| Fri, Nov. 18, 7:38 AM | 6 Comments
Thu, Nov. 17, 6:59 AM
- Guggenheim lowers Chipotle (NYSE:CMG) to a Sell rating after having the restaurant stock set at Neutral.
- The investment firm lines up a price target of $315 on Chipotle vs. the 52-week range of $352.96 to $614.70.
- There are 7 Sell ratings on CMG now from Wall Street firms, compared to 11 Buy ratings.
- CMG -1.02% premarket to $398.79.
Fri, Nov. 11, 11:57 AM
- Chipotle Mexican Grill (CMG +1.5%) says its Tasty Made offshoot burger restaurant that opened last month in Ohio is enjoying "strong" sales.
- CMG hopes Tasty Made, which is touting responsibly raised beef, could become a bright spot for a company still reeling from a food-safety crisis, as Q3 same-store sales plunged 21.9%.
- Tasty Made's Yelp reviews are mediocre but improving over the past two weeks; it is currently approaching a three-star rating, out of five.
Fri, Nov. 4, 5:35 PM
- Chipotle Mexican Grill (NYSE:CMG) and Pershing Square's Bill Ackman have signed an agreement to engage in confidential discussions, a sign that change could be coming for the company without a costly and drawn-out proxy contest, Reuters reports.
- Ackman, who took a nearly 10% stake in CMG two months ago and has not disclosed his strategy, wants multiple board seats with the aim of improving food safety and marketing, according to the report.
- Two major investors this week reportedly urged CMG shareholders to name an independent chairman, replacing founder and co-CEO Steve Ells, and hope to take up the issue the next annual meeting.
- CMG shares have lost 40% since a series of food borne illness outbreaks were linked to the chain late last year.
Fri, Nov. 4, 10:32 AM
- Avocado prices are due to drop sharply in the U.S. after a work stoppage in Mexico ended. Prices hit a record high recently due to strong demand, an extended drought in California and the labor strife in Mexico.
- "Avocados are flowing freely and abundantly into this country," says an avocado trade group representative.
- Companies impacted by avocado pricing include Calavo Growers (CVGW +0.6%) on the selling side and Chipotle (CMG -0.6%) and Panera Bread (PNRA -0.8%) on the buying side.
Tue, Nov. 1, 12:11 PM
- The reviews of Tasty Made are mixed at best, according to an aggregation of early samplers posted by Delish.com.
- The pricing from Tasty Made of $3.75 for a hamburger and $3.95 for a cheeseburger seems to be drawing the sharpest criticism on the new Chipotle (CMG -0.7%) concept.
- Tasty Made and Pizzeria Locale are the two "seed concepts" that Chipotle plans to grow, while the 15-unit ShopHouse Southeast Asian Kitchen chain is under a strategic review.
Mon, Oct. 31, 3:49 PM
- Chipotle (CMG -2.4%) drifts lower again to a session low of $360.15. The restaurant stock is also at a new multi-year low.
- It's been exactly one year since the restaurant chain fell victim to a devastating E. coli outbreak.
- Looking ahead, SA contributor Kevin Wenck notes the company's decision to shutter ShopHouse takes some of the punch out if its growth potential.
- "The failure of the ShopHouse concept as an expansion vehicle shows the limitations and lack of capabilities of CMG management," he adds.
Mon, Oct. 31, 3:42 PM
Fri, Oct. 28, 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.
Thu, Oct. 27, 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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