The fast food industry has undergone a change since the new concept of fast food casual dining was introduced by Chipotle Mexican Grill(CMG). Since then, the operator of restaurant chain is having a having a great time, witnessing a significant increase in demand. Also, consumer spending increased 0.5% in August, over the month of July. Thus, people are spending more on food and casual dining.
Chipotle Mexican Grill has been doing extremely well from the last few quarters as its restaurants resonate well with customers. Its quarterly revenue has surged 28.4% in the last one year. Also, its share price has appreciated by 19.4% during the same time.
A blockbuster quarter yet again
Chipotle reported its third quarter results, which were way ahead of Street’s estimates. However, its share price dropped 6% since investors were not happy with the outlook of comparable store sales growth for the next year.
Revenue for the quarter jumped a whopping 31% to $1.08 billion, over last year. The top line was higher than the analysts’ estimate of $1.06 billion. Factors which drove sales higher were new store openings and same store sales growth. The company opened 43 new restaurants during the quarter, which added to the overall revenue.
— Guru Focus