This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Chipotle Stays Hot

Chipotle Mexican Grill's (CMG - Get Report) fourth-quarter profit more than doubled amid improved operating margins and continued sales strength.

The burrito chain said Thursday that its earnings rose to $10.8 million, or 33 cents a share, from $4.3 million, or 16 cents a share, a year earlier. The results topped Thomson First Call's average analyst estimate of 28 cents a share.

Revenue jumped 27% to $219.7 million from $173.3 million, beating Wall Street's target of $216.4 million. Same-store sales, or sales at restaurants open at least a year, increased 10.1%.

Restaurant-level operating margins increased 170 basis points to 20.3%, which the company attributed to higher average restaurant sales and menu increases.

The stronger-than-expected results cap off Chipotle's first year as a public company. The chain was spun off last year from McDonald's (MCD - Get Report) in one of the hottest initial public offerings of 2006. The shares more than doubled to $44 on their first day of trading in January 2006 and since then are up about 40%.

The shares recently were jumping $3.14, or 5.1%, to $64.52 in after-hours trading, after rising 2.8% in the regular session.

Looking to 2007, Chipotle said it expects to open 95 to 105 new restaurants, and it sees same-restaurant increases in the mid- to low-single digits. The company currently has about 570 restaurants.

The company also noted that it doesn't yet know the effects that the recent California freeze will have on its results, but it still "remains focused" on delivering long-term earnings-per-share growth of 25%.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CMG $435.25 0.45%
MCD $129.28 -0.04%
AAPL $93.24 -0.41%
FB $117.80 -0.22%
GOOG $701.26 0.80%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs