The ongoing success and rising profits indicate that, at least up to this point, customers are not significantly deturbed by the frequent price revisions. Dividend yield allows investors, particularly those interested in dividend-paying stocks,
to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

But the total appreciation from the 22 IPO price to the 2015 high? More locations followed and, in 1998, McDonald’s (MCD) took a minority stake in Chipotle. Soon, the world’s biggest burger chain became the burrito chain’s biggest investor, which allowed Chipotle to expand from 14 locations in 1998 to over 500 by 2005. And Chipotle lovers sounded off in the comment section of a viral TikTok on “the downfall of Chipotle” in July. They recalled a time when their chicken burrito bowl only cost $7.99 — and longed for a taste of a Chipotle burrito from 2011. Faced with the reality of everything costing more, it may be that Tex-Mex fans are willing to pay a little extra for the luxury of a burrito with some queso and guac on the side for the time being.

Inflation rose by 3.7% in August compared to last year’s figures for the same month, the US Bureau of Labor Statistics said. The next read on consumer prices comes on Thursday — and economists are expecting another steep rise from last year’s figures. The chain is raising prices, it confirmed to Insider on Tuesday. But it remains to be seen exactly which menu items will come with a higher price tag. While inflation is finally moving in a better direction, consumer prices this month still rose overall 3.7% from earlier years after hitting a 40-year high of 9.1% in June 2022. Chipotle Mexican Grill currently has an average brokerage recommendation (ABR) of 1.64 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 28 brokerage firms.

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Terms of Service apply. The stock has since climbed past 1,366.76 again and is now extended.

Earnings Transcripts

Finally, regarding development, the company opened 47 new restaurants in the period (including 40 Chipotlanes), with its Chipotlanes continuing to outperform, and not surprisingly, Chipotle continues to aim for ~80% of new restaurants in this new format. Meanwhile, from a top-line the white coat investor standpoint, sales estimates are sitting at ~$2.48 billion for its upcoming Q3 results, implying a ~12% increase in sales year-over-year. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.

• Chipotle Mexican Grill, which staged a breakout after its latest earnings report, has come a long way from a deep dive during the coronavirus stock market crash.
• It priced at 22 a share, above the expected range of 18-20, and closed at 44 the first day.
• The newest base is second stage, which means Chipotle stock could still have room to run.
• It’s a trend economists expect to have continued in September, according to financial data company FactSet.

They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. However, the price hikes don’t appear to have diminished customers’ appetite for Chipotle’s burritos, bowls and other Mexican-inspired offerings.

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That proved helpful as U.S. states ordered people to stay indoors and only get takeout or delivery. But higher delivery and food costs ate into margins, sending the stock lower after hours. Profit growth slowed to 7%, to $15.10 a share in 2015, ending a 10-year streak of double-digit or higher gains. It recovered nicely the next three years, to $14.05 a share in 2019. “The [Chipotle] brand is very strong and the value proposition is very strong, and we have that pricing power to use,” Niccol told investors during the call. Your favorite Tex-Mex fast casual spot may no longer be much of a bargain compared to a sit-down restaurant meal.

Please remember that OTC-BB stocks are not allowed in the game. Investors can’t forget about the company that’s been long dominating the fast-casual category. We’d like to share more about how we work and what drives our day-to-day business. Compare
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against its industry peers and the overall market. In light of escalating living costs and a complex economic backdrop in the U.S., a recent survey delved into the financial dispositions and actions of Gen Zer individuals.

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A fast-casual restaurant chain, Chipotle Mexican Grill focuses on fresh and organic ingredients, tempting diners with gigantic burritos, salads, and more. For more ideas on the best stocks to buy or watch, investors can check IBD stock lists and other IBD content. An A SMR Rating (Sales + Profit margins + Return on equity) places Chipotle in the top 20% of all stocks based on those gauges. ROE of 25.5% was also the best in at least nine years — and meets the 17% minimum of most leading growth stocks. Digital sales surged 202.5% and accounted for 48.8% of overall Q2 sales.

Chipotle Mexican Grill Inc. hosts conference call for investors

The latter has been a worry for several years and, understandably; the bulls have become de-sensitized to this topic given that Chipotle continues to consistently grow sales, with most guests having no issue forking over more each year for its entrees/sides. However, we’ve finally reached a potential tipping point where even some more affluent customers are trading down on groceries as pointed out by Walmart (WMT), and for its younger customer base, the restart of student loans won’t help. Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $8.6 billion in 2022. Chipotle sells burritos, burrito bowls, tacos, quesadillas, and beverages, with a selling proposition built around competitive prices, high-quality food sourcing, speed of service, and convenience. The company generates its revenue entirely from restaurant sales and delivery fees. High-growth stocks tend to represent the technology, healthcare, and communications sectors.

Chipotle Mexican Grill Inc. Past Events

The current ABR compares to an ABR of 1.64 a month ago based on 28 recommendations. Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

This Is What Whales Are Betting On Chipotle Mexican Grill

Founder Steve Ells opened the first location in Denver with money borrowed from his father. The custom burrito concept proved popular, with the restaurant selling more than 1,000 burritos a day after just one month. The price increases come as other chains, like Shake Shack and Taco Bell, have raised their prices over the past two years. Months before that, in the first quarter of 2022, Chipotle raised its prices by 4%. That was on top of another increase in June 2021, which the company said was to offset the cost of paying Chipotle employees more.

In summary, I see Chipotle as an Avoid ahead of its Q3 results and I would view any rallies above $1,950 before year-end as profit-taking opportunities. That’s because the Tex-Mex chain plans to bump up menu prices, the company confirmed to Insider Tuesday, marking its fourth price hike in two years. Chipotle is attributing the move to “the state of the economy,” the publication review the research driven investor reported. Simultaneously, it was benefiting from mid-single-digit menu pricing to help combat higher beef prices and lower avocado prices. However, with it won’t have the same benefit in Q3/Q4 with the LTO taken off the menu in late August, and Chipotle won’t have the same benefit of pricing given that pricing was rolling off to just ~2.5% effective pricing as of August.