Chipotle (CMG) CEO Hartung Bullish on Company, Shophouse Concept - Cramer
Shares of Chipotle Mexican Grill, Inc. (NYSE: CMG) are looking strong pre-market Friday following comments from CEO Jack Hartung recently.
Speaking with Jim Cramer on Thursday's Mad Money, Hartung said Chipotle restaurants are grossing about $2 million each, up significantly from gross of $1.4 million each unit was producing just a few years ago. Even further, the increase in gross revs isn't from price increases, though there have been small nudges higher. Instead the numbers come from dedicated clientele and new customers becoming regulars.
On food costs, Hartung said more demand is better for Chipotle. With increased demand comes increased supply, Hartung pointed out, ultimately leading to lower prices for everyone.
Hartung said Chipotle will not run gimmicky or limited-time promotions. Chipotle is looking to build a stronger bond with its customer base.
Though he's excited about Chipotle's new Shophouse Asian Kitchen concept, Hartung insists the Company will take the expansion "one step at a time." Some adjustments are still being made, but Hartung is confident Shophouse "will be the next Chipotle."
Following the discussion, Cramer said any dip in the stock is a buying opportunity.
Of note: last Wednesday, Chipotle reported fourth-quarter earnings of $1.81 per share on revenue of $596.7 million, which were mixed to consensus views calling for EPS of $1.83 and revs of $591.2 million. Comps rose 11.1 percent, and food costs moved 1.2 points higher to 32.2 percent of sales.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
Speaking with Jim Cramer on Thursday's Mad Money, Hartung said Chipotle restaurants are grossing about $2 million each, up significantly from gross of $1.4 million each unit was producing just a few years ago. Even further, the increase in gross revs isn't from price increases, though there have been small nudges higher. Instead the numbers come from dedicated clientele and new customers becoming regulars.
On food costs, Hartung said more demand is better for Chipotle. With increased demand comes increased supply, Hartung pointed out, ultimately leading to lower prices for everyone.
Hartung said Chipotle will not run gimmicky or limited-time promotions. Chipotle is looking to build a stronger bond with its customer base.
Though he's excited about Chipotle's new Shophouse Asian Kitchen concept, Hartung insists the Company will take the expansion "one step at a time." Some adjustments are still being made, but Hartung is confident Shophouse "will be the next Chipotle."
Following the discussion, Cramer said any dip in the stock is a buying opportunity.
Of note: last Wednesday, Chipotle reported fourth-quarter earnings of $1.81 per share on revenue of $596.7 million, which were mixed to consensus views calling for EPS of $1.83 and revs of $591.2 million. Comps rose 11.1 percent, and food costs moved 1.2 points higher to 32.2 percent of sales.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
You May Also Be Interested In
- Savient Pharma (SVNT) Moves Higher with Volatility; Bumps Up Against Key Resistance Point
- UPDATE: Global Hunter Securities Starts Kosmos Energy (KOS) at Buy; High Risk, High Reward
- UPDATE: Youku.com (YOKU) Misses Q1 EPS by 1c; Sees Q2 Sales Up 90-100% YoY
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Jim Cramer, Raising Prices, EarningsComments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
Jack Hartung
Steven Johal on Feb 6, 2012 09:58 AMMark as Spam
Jack Hartung is actually CFO.