Canaccord Genuity Morning Coffee on Chipotle Mexican Grill (CMG): Losing A Little Spice?
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Price: $368.27 -0.05%
Rating Summary:
11 Buy, 11 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
11 Buy, 11 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade CMG Now!
Canaccord Genuity Morning Coffee on Chipotle Mexican Grill (NYSE: CMG): Losing a little spice?
An analyst at Investment Technology Group (ITG) stated that a measurement of sales growth at the casual food chain seems to be slowing. The ITG analyst forecast second-quarter revenue of $700 million, below Wall Street's consensus of about $707 million. The analyst also noted that revenue at restaurants open at least a year seemed to be decelerating - forecasting second-quarter growth between 7-8%, compared to 12.7% in the first quarter and 10% in the same period last year. ITG also noted that despite its lower-than-consensus sales forecast, it still expects relatively strong growth for the casual food chain. "In our view, Chipotle is still experiencing industry-leading growth, and is still expected to report strong sales at quarter end," the ITG analyst stated. Chipotle has been a standout among restaurant companies for several years as customers have flocked to the chain, the AP noted. That has made it a darling on Wall Street. In April, the Denver-based company said its first-quarter net income rose by 35% as more diners visited its restaurants and it benefited from price increases. Chipotle, which has more than 1,200 restaurants, plans to add another 155-165 this year.
Shares of CMG fell 6% on Wednesday and are trading down another 3.38% (-$13.24) to $378.54 in today's session.
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An analyst at Investment Technology Group (ITG) stated that a measurement of sales growth at the casual food chain seems to be slowing. The ITG analyst forecast second-quarter revenue of $700 million, below Wall Street's consensus of about $707 million. The analyst also noted that revenue at restaurants open at least a year seemed to be decelerating - forecasting second-quarter growth between 7-8%, compared to 12.7% in the first quarter and 10% in the same period last year. ITG also noted that despite its lower-than-consensus sales forecast, it still expects relatively strong growth for the casual food chain. "In our view, Chipotle is still experiencing industry-leading growth, and is still expected to report strong sales at quarter end," the ITG analyst stated. Chipotle has been a standout among restaurant companies for several years as customers have flocked to the chain, the AP noted. That has made it a darling on Wall Street. In April, the Denver-based company said its first-quarter net income rose by 35% as more diners visited its restaurants and it benefited from price increases. Chipotle, which has more than 1,200 restaurants, plans to add another 155-165 this year.
Shares of CMG fell 6% on Wednesday and are trading down another 3.38% (-$13.24) to $378.54 in today's session.
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