Is This the End of Chipotle's Monster Rally?
Chipotle Mexican Grill (NYSE: CMG) delivered another blowout earnings report Tuesday as the company beat estimates on the top and bottom lines, and executed on all of its key initiatives.
Growth in comparable sales accelerated for the eighth quarter in a row, coming in at 13.4% as comparable transactions grew 8%, an impressive number at a time when many other restaurant chains are struggling to grow customer traffic. Digital sales jumped 78.3% to 19.6% of sales, and restaurant-level operating margin rose from 17% to 19.2%.
Chipotle is effectively carrying out nearly all of the growth initiatives that CEO Brian Niccol has set out for the company since he took the helm nearly two years ago. The burrito chain has rapidly expanded its digital and delivery capabilities. It's marketing more effectively and efficiently, and growing its loyalty program. It's rolling out its own version of drive-thru, called Chipotlanes, which will help lift digital sales and tap into customer demand. And it's introducing popular new menu items, like carne asada and queso blanco.
Source Fool.com
