Is Chipotle Mexican Grill a Buy After a Recent Earnings Announcement?
With shares of Chipotle Mexican Grill (NYSE:CMG) trading around $506, is CMG an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Chipotle Mexican Grill operates restaurants throughout the United States, as well as two restaurants in Toronto, Canada and two in London, England. The company’s restaurants serve a menu of burritos, tacos, burrito bowls, and salads. Chipotle Mexican Grill manages its operations and restaurants based on six regions that all report into a single segment. It prides itself in serving the best possible ingredients during a time when consumers are more keen to this detail.
On Friday morning, Chipotle Mexican Grill reported earnings and revenues figures that surpassed Wall Street’s expectations. “Our unique food culture continues to resonate with our customers. We are proud of the investments we have made over the years to source sustainably raised ingredients, which allows us to serve delicious food. By sourcing the best possible ingredients and cooking them according to classic cooking techniques we continue to demonstrate that just because food is served fast, it doesn’t have to be a typical fast food experience,” said Steve Ells, Founder, Chairman and co-CEO of Chipotle.