Chipotle Q3 Comps Beat Estimates, Shares Jump 8% After Hours
CMG is trading near its 52-week low of $27.31 (13% above the low).
Summary
Chipotle's third-quarter same-store sales rose 2.1%, ahead of the 1.5% average analyst estimate, marking a third straight quarter of positive comps. Revenue climbed nearly 10% to $3.3 billion, in line with expectations, but net income came in below forecasts as beef and freight inflation, higher protein usage, and rising labor and insurance costs squeezed margins. Shares rose 8% in extended trading. The print follows the 8-K filed Wednesday evening showing diluted EPS down 6.9% on margin compression, and it comes after a brutal stretch in which a jalapeño-linked salmonella outbreak and a parasite scare hit traffic and left the stock down 22% year to date. Management kept full-year comp guidance at low-single-digit growth and flagged October trends as choppy, with a mesquite-smoked brisket launch on Nov. 5 expected to help. Watch whether the after-hours gain holds into Thursday's session, and whether the Starbucks takeover speculation from early October resurfaces now that demand has stabilized.
At the time of this announcement, CMG was trading at $30.74 on NYSE in the Trade & Services sector, with a market capitalization of approximately $36.4B. The 52-week trading range was $27.31 to $41.42. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: CNBC TV18.