NEW YORK (TheStreet) -- Shares of Chipotle Mexican Grill, Inc. (CMG) are up 0.83% to $684.04 on heavy trading volume as the company defies a broader restaurant slowdown, and as it nears a $700 stock price for the first time on signs that third quarter sales are growing faster than expected, Bloomberg reports.
Same-store sales are up 19% to 20% this quarter, helped by higher foot traffic, an increase in prices and a move into catering, says Steven Gojak, an analyst at Cleveland Research Co., today in a report.
Analysts on average have predicted growth of about 15% in the period, according to Bloomberg data.
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Last month, the chain reported second quarter earnings that beat analysts' estimates, as revenue jumped 29% to $1.1 billion.
TheStreet Ratings team rates CHIPOTLE MEXICAN GRILL INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHIPOTLE MEXICAN GRILL INC (CMG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."