Chipotle’s sales growth falls short of Wall Street forecasts

Sales at stores open for more than one year (same-store sales) rose 4.3% in the quarter, lower than the estimate for 5.8%.

In the statement, CEO Steve Ells said: “We feel good about our second quarter results, as our revenue, average restaurant sales, and comparable restaurant sales have continued to grow even comparing to a very strong 2014”. (NYSE:CMG) a company in the Services industry getting a lot of attention at the moment, to assess if it provides value for investors considering buying or selling it. now Chipotle Mexican Grill, Inc.is trading at $661.95 after moving up 0.53% in the previous day of trading.

Revenue rose 14.1 percent to $1.20 billion.

The company opened 48 restaurants during the quarter, bringing its total to 1,878.

The restaurant chain reported adjusted earnings per share of $4.45, above the consensus estimate for $4.43 as indicated by Bloomberg. Food costs declined 150 basis points to 33.1% of revenue. The chain’s current woes began in February when it told investors it expects same store sales growth to drop into the low to mid single digits this year. A decrease in dairy and avocado prices offset higher prices for beef and for packaging, Chipotle said. We are completely focused on strengthening this culture, by teaching people how to empower those around them to be at their best and developing leadership internally, and by making further investments in our teams, most recently by adding benefits for our hourly employees, including increased paid vacation and sick days and tuition reimbursement. Analysts at Oppenheimer reiterated an “outperform” rating and set a $775.00 price target on shares of Chipotle Mexican Grill in a research note on Friday, July 10th.

The mean analyst 12 month target price for Chipotle Mexican Grill, Inc.

The street is mostly Bullish on CMG stock. One analyst has rated the stock with a sell rating, six have issued a hold rating and twelve have assigned a buy rating to the company. The shares were sold at an average price of $662.52, for a total value of $1,455,556.44. Chipotle Mexican Grill restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads.