Chipotle Approaches Record High $700, Defying Industry Slump

Thursday, 21 Aug 2014 03:29 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Chipotle Mexican Grill Inc., a burrito chain that’s defying a broader restaurant slowdown, approached a $700 stock price for the first time on signs that third-quarter sales are growing faster than expected.

Same-store sales are climbing 19 percent to 20 percent this quarter, lifted by higher foot traffic, an increase in prices and a push into catering, Steven Gojak, an analyst at Cleveland Research Co., said in a report Thursday. Analysts on average have predicted growth of about 15 percent in the period, according to data compiled by Bloomberg.

Editor's Note: Weird Trick Adds Up to $1,000 to Your Social Security Checks

“Traffic trends have held fairly steady so far in the third quarter and we do not believe there has been any meaningful pushback on the company’s recent menu price increase,” the Cleveland-based analyst said in the report.

Younger diners are flocking to the Mexican chain in search of healthier options and the ability to customize their meals. Chipotle, based in Denver, also has been adding catering services to its stores and accelerating new restaurant growth to help boost sales. Last month, the chain reported second-quarter earnings that topped analysts’ estimates, while revenue rose 29 percent to $1.1 billion.

The stock rose as much as 2.9 percent to $697.93 in New York, marking a record intraday high. The shares advanced 0.6 percent to $682.26 at 2:06 p.m. in New York.

Chipotle had climbed 27 percent this year through yesterday, compared with a 0.3 percent decline for the Standard & Poor’s 500 Restaurants Index, which includes chains such as McDonald’s Corp. and Darden Restaurants Inc.

Chipotle, which has about 1,680 restaurants, recently raised U.S. menu prices by 6.25 percent to 6.5 percent, on average. The company is seeing higher costs for key ingredients including beef, avocados and dairy.

Vote Now: Do You Approve Or Disapprove of President Obama's Job Performance?

© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

El-Erian: 4 Things to Remember After a Wild Market Week

Monday, 20 Oct 2014 08:02 AM

Many investors will remember last week's market gyrations (and Wednesday's in particular) as exceptional, exciting, frig . . .

Another Year, Another Small Social Security Bump: About $20 a Month

Monday, 20 Oct 2014 07:49 AM

For the third straight year, millions of Social Security recipients, disabled veterans and federal retirees can expect h . . .

NABE Survey: Pay Raises Rarer Despite Strong US Hiring

Monday, 20 Oct 2014 07:33 AM

U.S. businesses were much less likely to boost pay in the third quarter than in previous months, even as hiring remained . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved