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Chipotle Mexican Grill, Inc. (CMG)

  • Fri, May 1, 9:04 AM
    • BMO Capital upgrades Chipotle (NYSE:CMG) to an Outperform rating after having a Neutral stance on the high-flyer.
    • The investment firm's updated price target of $760 accounts for a new runway of growth it sees for the restaurant chain and the potential for cash to be returned to shareholders.
    • BMO notes a deceleration in Chipotle's comp growth off the high teens marks of 2014 is widely expected and shouldn't create a disruption.
    • CMG +0.8% premarket to $626.05.
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  • Wed, Apr. 29, 1:22 PM
    • Restaurants stocks are falling harder than broad market averages with disappointing reports from Buffalo Wild Wings and Panera Bread raising some concerns.
    • Increasing labor and commodity costs are seen as a threat to margins across the group.
    • Today's GDP report may also be a factor in the sector falling out of favor for the day.
    • Decliners include Denny's (DENN -7%), Krispy Kreme Dougnuts (KKD -5.6%), Red Robin Gourmet Burgers (RRGB -5.9%), Kona Grill (KONA -6.6%), Texas Roadhouse (TXRH -5.9%), Jack in the Box (JACK -4.6%), Bloomin' Brands (BLMN -4.7%), El Pollo Loco (LOCO -4.6%), and Cracker Barrel (CBRL -4.8%).
    • Even momentum-fueled Chipotle (CMG -1.7%) and Habit Restaurants (HABT -1.7%) are peeling off some gains, while Shake Shack (NYSE:SHAK) is proving harder to knock down and is +0.2% on the day.
    • Previously: Panera Bread -2% after sluggish earnings print (April 28)
    • Previously: Buffalo Wild Wings slumps with chicken wing and labor costs a concern (April 28)
  • Mon, Apr. 27, 2:24 AM
    • Chipotle (NYSE:CMG) has finished removing genetically engineered ingredients from its foods, becoming the first major restaurant chain to do so amid growing concerns about the agricultural technology.
    • The company has been working for more than two years to eliminate ingredients made with GMOs, hoping to be done by the end of 2014, but the transition "took a little longer" than previously thought, a Chipotle spokesman said.
  • Wed, Apr. 22, 9:15 AM
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  • Wed, Apr. 22, 9:08 AM
    • Investment firms are weighing in on Chipotle (NYSE:CMG) following the company's Q1 report and 2015 guidance.
    • Raymond James downgrades shares of the restaurant operator to Market Perform from Outperform.
    • Credit Suisse takes its price target down to $770 from $785, while keeping the company rated at Outperform.
    • Sterne Agee holds tight with a Buy rating and $766 price target.
    • Previously: Chipotle -4.7% as comp growth slows (Apr. 21 2015)
    • Previously: Chipotle tips new price hikes during earnings call (Apr. 21 2015)
    • CMG -5.41% premarket to $655.06.
    | 1 Comment
  • Tue, Apr. 21, 9:22 PM
    • Chipotle (NYSE:CMG) would have put up an even stronger Q1 comp if the supply of carnitas didn't run short at a high percentage of its stores.
    • Execs tipped off the during the earnings call that the company sees pushing through more menu price increases. Steak and barbacoa price hikes of 4% to 6% are expected by Q3.
    • The fast-casual chain's strong run of double-digit comp growth is highlighted by management.
    • They also noted that operating expenses as a percentage of sales fell 320 bps to 81.8% as sales leverage reduced the impact of some costs.
    • Previously: Chipotle Mexican Grill beats by $0.22, misses on revenue (April 21)
    • Previously: Chipotle -4.7% as comp growth slows (April 21)
    • Chipotle earnings call webcast
    • CMG -5.41% in the after-hours session to $655.05.
    | 1 Comment
  • Tue, Apr. 21, 5:37 PM
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  • Tue, Apr. 21, 4:08 PM
    • Chipotle (CMG +0.9%) reports comparable-store sales rose 10.4% in Q1 vs. 11.6% expected and 16.1% in Q4.
    • Higher menu prices were a factor during the quarter.
    • Restaurant level operating margin +90 bps Q/Q and +160 bps Y/Y to 27.5%.
    • Food cost ratio -60 bps to 33.9% as price hikes offset higher beef and tortilla costs.
    • Store count +49 Q/Q to 1,831.
    • Guidance: Chipotle's comp growth outlook for 2015 is for a low to mid-single digit rate increase. 190 to 205 new store openings expected.
    • CMG -4.7% after-hours to $667.21.
  • Tue, Apr. 21, 4:03 PM
    • Chipotle Mexican Grill (NYSE:CMG): Q1 EPS of $3.88 beats by $0.22.
    • Revenue of $1.09B (+20.6% Y/Y) misses by $20M.
    • Shares -4.8%.
    • Press Release
  • Mon, Apr. 20, 5:35 PM
  • Wed, Apr. 15, 11:00 AM
    • Cowen Research initiates coverage on 8 different restaurant stocks.
    • Starbucks (SBUX -0.1%) and Chipotle (CMG +0.7%) land Outperform ratings.
    • Also of note, the high-flying pair ranked first and second in a Piper Jaffray poll of top restaurants brands with upper-income and average-income teenagers.
    • Buffalo Wild Wings (BWLD +0.6%) was the third stock set at Outperform by Cowen.
    • Habit Restaurants (HABT -1.8%), McDonald's (MCD -0.3%), Restaurants Brands Group (QSR +0.2%), Panera Bread (PNRA +0.7%), and Yum Brands (YUM +0.8%) were given a rating of Market Perform by the investment firm.
    • None of the restaurant stocks listed above trade with a forward P-E ratio below 20.
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  • Sat, Apr. 11, 10:22 AM
    • M&A activity in the restaurant sector is tracking below the level seen in the broad market, observes Nation's Restaurant News.
    • Concerns on the high valuations of publicly-traded brands have limited merger activity to franchise-heavy companies or leveraged deals like the one slapped together by 3G Capital with Burger King and Tim Hortons to create Restaurant Brands International (NYSE:QSR).
    • "Public company stocks are priced toward perfection," warns KeyBanc director Brad Swanson.
    • The reluctance of large companies to snap up new concepts is part of the reason growth chains such as Habit Restaurants (NASDAQ:HABT), Zoe's Kitchen (NYSE:ZOES), El Pollo Loco (NASDAQ:LOCO), and Shake Shack (NYSE:SHAK) have gone down the IPO path, while Chipotle (NYSE:CMG) and Buffalo Wild Wings (NASDAQ:BWLD) are incubating their new concepts in-house.
    • Bojangles' (BOJA), Smashburger, or Five Guys could be the next IPO high-flyer.
    • There's a thought that the smart money is passing on the sector while individual investors are playing roulette looking for the next restaurant superstar.
    • Numbers dive: The historical average for restaurant chains is an enterprise value multiple of 10X cash flow for quick-service chains and 7.9X cash flow for casual-dining chains vs. the current trading level of 14X EV for quick-service brands and 10X EV for casual-dining names.
    • Buy-and-hold investors still have options on the menu. The restaurant stocks with the lowest 5-year P-E ratio (estimated) are McDonald's (NYSE:MCD), Ruby Tuesday (NYSE:RT), Red Robin Gourmet Burgers (NASDAQ:RRGB), Bob Evans Farms (NASDAQ:BOBE), and DineEquity (NYSE:DIN).
  • Fri, Apr. 10, 10:01 AM
    • Chipotle (CMG +4%) breaks higher in early trading on strong volume without any news out from the company.
    • The stock has been meandering in a narrow trading range for most of the week.
    • Chipotle releases Q1 results on April 21 with analysts expecting revenue of $1.1B and EPS of $3.58. A large focus will be on the expected deceleration of same-store sales growth from their giddy levels of 2014. Traders expect some additional earnings volatility this year on the stock.
  • Wed, Apr. 8, 12:08 PM
    • Chipotle (CMG -0.1%) continues to have issues keeping restaurants fully stocked amid its tight standards on food quality.
    • Pork sourcing has been the most pressing problem nationally for the chain, although some local restaurants have also run low on chicken and beef.
    • The company's plan to add 205 restaurants this year and the increase of fast-food chains looking to buy meat free of antibiotics and hormones could exacerbate the sourcing challenges.
    • Shares of CMG are flat over the last month and -3.8% YTD.
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  • Fri, Mar. 13, 1:39 PM
    • Levy Acquisition plans to change its name to Del Taco after buying out the fast-food concept
    • Shares of the company will trade on the Nasdaq under the symbol LEVY.
    • The Del Taco chain has made an effort to expand its menu to include premium burritos and bowls in order to serve as a Chipotle (NYSE:CMG) and Taco Bell (NYSE:YUM) alternative.
    • Expanding Del Taco into emerging and established markets is part of the plan post-buyout.
    • Currently, Del Taco has about 550 restaurants in the U.S. across 16 states.
    | Comment!
  • Fri, Mar. 13, 11:36 AM
    • Chanticleer Holdings (HOTR +4%) is the restaurant stock which has shown the largest jump in sales per share for the last quarter, according to data from Marketwatch.
    • Chains with outlets operated or owned by Chanticleer includes Hooters, Just Fresh Restaurants, and American Burger Co.
    • Chanticleer's focus with Hooters is in developing the concept in new global markets.
    • Habit Restaurants (HABT -6.7%) and Frisch's Restaurants (FRSH -0.4%) were the next two on the sales-per-share growth list.
    • Chipotle (CMG -0.1%), despite all the focus on valuation by skeptics, ranked 4th by improving sales per share by 26% to $33.92 over the last year.
    | 1 Comment
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Company Description
Chipotle Mexican Grill Inc operates Chipotle Mexican Grill restaurants, which serves a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads, made using fresh ingredients.
Sector: Services
Industry: Restaurants
Country: United States