Chipotle (CMG) CEO Hartung Bullish on Company, Shophouse Concept - Cramer
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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.
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.
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