Forex Trading

Chipotle Mexican Grill, Inc CMG Company Profile & Facts

Meanwhile, commenters on a Reddit post in a Chipotle-focused board questioned whether the latest price hikes could push loyal customers to abandon the chain. Chipotle pioneered the fast-casual concept, and investors should take advantage of the recent dip in its share price. A fast-casual restaurant chain, Chipotle Mexican Grill focuses on fresh and organic ingredients, tempting diners with gigantic burritos, salads, and more. For more ideas on the best stocks to buy or watch, investors can check IBD stock lists and other IBD content. The broader market is in a confirmed uptrend and striking new highs.

That is because some firms prohibit Zacks from displaying detailed information on their recommendations such as in the upgrade/downgrade table. Many of the brokerage firms who provide Zacks data ask that we keep their identity confidential. The scores are based on the trading styles of Value, Growth, and Momentum.

  • Meanwhile, commenters on a Reddit post in a Chipotle-focused board questioned whether the latest price hikes could push loyal customers to abandon the chain.
  • Chipotle has serving up several price hikes over the last few years.
  • Profit growth slowed to 7%, to $15.10 a share in 2015, ending a 10-year streak of double-digit or higher gains.
  • These are established companies that reliably pay dividends.

The company also didn’t disclose when the change will take effect. Chipotle has serving up several price hikes over the last few years. In August 2022, Chipotle raised the prices of its entrees by more than $1 for some customers. That increase followed a previous increase earlier that same year. Before that, the company had also bumped up its prices in June 2021, a move it attributed to a hike in hourly wages for employees to $15 an hour.

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. As of Tuesday morning, a chicken burrito legacyfx review bowl from a Chipotle location in Brooklyn costs about $10.95 without any extra guac or queso. The increase meant some customers would pay more than $1 more for their entrees once the price increase took effect in August of the same year. Laurie Schalow, chief corporate affairs officer at Chipotle, pointed to the state of the economy as the reason for the price hikes — the chain’s fourth in the past two years.

CHIPOTLE’S FAN-FAVORITE CARNE ASADA IS BACK ON THE GRILL FOR A LIMITED TIME

However, the price hikes don’t appear to have diminished customers’ appetite for Chipotle’s burritos, bowls and other Mexican-inspired offerings. Chipotle’s net sales rose 13.6% to $2.51 billion in the second quarter compared to the same quarter a year prior, the company’s filing shows. Despite apparently rising costs, Chipotle’s 2023 second quarter report saw a 13.6% increase in revenue year over year, bringing the overall number to $2.5 billion. The eatery also opened 47 new restaurants with 40 locations including a Chipotlane drive thru.

  • Consumer prices rose by an annual rate of 3.7% in August, marking the second consecutive month of rising costs, data from the U.S.
  • Soon, the world’s biggest burger chain became the burrito chain’s biggest investor, which allowed Chipotle to expand from 14 locations in 1998 to over 500 by 2005.
  • She didn’t detail which menu items would be affected and didn’t respond to follow-up questions.
  • “The [Chipotle] brand is very strong and the value proposition is very strong, and we have that pricing power to use,” Niccol told investors during the call.
  • It recovered nicely the next three years, to $14.05 a share in 2019.

The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price. Chipotle confirmed to USA TODAY that consumers will soon see a hike in menu prices, the fourth such increase in just two years. Laurie Schalow, Chipotle’s chief corporate affairs officer, attributed the change to the state of the economy, citing inflation as the culprit.

How has CMG performed historically compared to the market?

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.17% per year.

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Profit growth slowed to 7%, to $15.10 a share in 2015, ending a 10-year streak of double-digit or higher gains. It recovered nicely the next three years, to $14.05 a share in 2019. Chipotle Mexican Grill, which staged a breakout after its latest earnings report, has come a long way from a deep dive during the coronavirus stock market crash. “The [Chipotle] brand is very strong and the value proposition is very strong, and we have that pricing power to use,” Niccol told investors during the call. Chipotle CEO Brian Niccol called attention to the loyalty of the fast-food joint’s fans during an earnings call in July. Of the 28 recommendations deriving the current ABR, 18 are Strong Buy and two are Buy.

CMG Overview

Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements. As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. While the Mexican grill chain hasn’t said how much it is raising prices, in June 2021, the increase was about 4 percent.

On the revenue front, growth stayed in the double digits but shrank 13% in 2016. Sales rebounded to 15% growth in ’17, slowed to 9% in ’18, and stepped up to 15% last year. Chipotle stock ran into trouble again, languishing more than two years amid reports of seemingly recurring E. The stock then recovered vantage fx more than 250% to a new high in February 2020, before a steep drop due to the coronavirus crash. On Nov. 11, Chipotle announced it’s opening its first “ghost kitchen” to handle just digital orders, in New York. The new restaurant, for pickup and delivery orders only, is called Chipotle Digital Kitchen.

It priced at 22 a share, above the expected range of 18-20, and closed at 44 the first day. Within the first two years, CMG stock soared more than 600% from its IPO price. Chipotle, in particular, first announced in June 2021 that it would raise prices by as much as 4% to offset the cost of increased employee wages. Your favorite Tex-Mex fast casual spot may no longer be much of a bargain compared to a sit-down restaurant meal. In most cases the # of brokers listed above is less than the # of brokerage firms that have a recommendation on the stock.

Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth hyperforex broker review scores, which are first individually calculated. Chipotle’s stock has risen 30% this year, giving it a market value of $50.1 billion.

The ongoing success and rising profits indicate that, at least up to this point, customers are not significantly deturbed by the frequent price revisions. Zacks provides the average brokerage recommendation (ABR) for thousands of stocks for most of the leading investment web sties. The ABR is the calculated average of the actual recommendations (strong buy, hold, sell etc) made by the brokerage firms for a given stock. High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses.

Chipotle’s latest planned price increases come at a time when inflation is up once again. Consumer prices rose by an annual rate of 3.7% in August, marking the second consecutive month of rising costs, data from the U.S. It’s a trend economists expect to have continued in September, according to financial data company FactSet.

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