Why Chipotle Stock Soared Almost 19% in January
Shares of Chipotle Mexican Grill (NYSE: CMG) stock rose 18.7% in January, according to data from S&P Global Market Intelligence. The company didn't report any news, but it benefited from renewed investor confidence in companies that are posting strong performance.
Chipotle has a working formula that breeds strong consumer loyalty and engagement. It's at that sweet spot that meets an affluent, resilient customer market, shoppers who still have some disposable money to spend at times like these, without being so high-luxury that shoppers pull back in a tight economy.
It has posted revenue and comparable sales (comps) increases consistently, straight through the pandemic and inflation. Sales increased 13.7% in the 2022 third quarter more than last year, fueled by a 7.6% comps increase. Profits have increased as well, rising 28% year over year in the third quarter. It successfully raised prices to match rising costs, taking off some of the inflationary pressure it has been experiencing like everyone else.
Source Fool.com
