Don't Get Used to Chipotle's Impressive Growth
Chipotle Mexican Grill (NYSE: CMG) has been a huge success for investors. That's largely because the brand concept has been a huge success with consumers. The latest sign of that is the company's massive 11.1% same-store sales performance in the second quarter of 2024. That helped to drive overall revenue 18.2% higher. These were impressive results, but be careful about projecting this strength into the future.
When you examine a restaurant's sales, there are two numbers that are important. The first is the overall top line, or just sales. But that figure is made up of two things, sales at existing locations and the sales generated from newly opened restaurants. Because new restaurants can provide a large boost to revenue, investors also look at same-store sales, which examines the sales performance at locations that have been open for at least a year.
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Source Fool.com
