Meanwhile, the market consensus among the analysts suggests a YoY growth in sales for this year to be shy above 25%. At that rate, management predicts a low to mid double-digits range in revenue for Q3. The ambition within the firm is to open a total of 200 new stores by the end of the financial year. During the last quarter, Chipotle opened 56 new stores, including one relocation and only 5 closed doors. As a results revenue for April and May was down 24.4% and 7%, respectively. The quarter overlaps with Q2 from 2020 when 30 restaurants remained closed during the same period because of COVID-19. We believe on-going strength in digital sales, the strong recovery of in-restaurant sales, positive customer reception to our new menu items, and lapping the peak of the pandemic from last year contributed to second quarter revenue growth.Īs impressive as all these figures may sound, they are facing some soft comparables from the midst of the pandemic. This is what the CEO had to say about the results from Q2: Meanwhile, EPS also skyrocketed and ended up $6.60, compared to $0.29 for the same period last year. They increased from -0.4% from a year ago, to an impressive 13%. Operating margins showed a huge improvement too. Online sales play a key factor standing at 48.5% of the total revenue, compared to just 26.3% of the mix during Q1 of 2020, just before the pandemic. Comparable restaurant sales increased 31.2% and digital sales grew 10.5%. In the last quarter, the company unveiled an increase in revenue by 38.7% to $1.9 billion, just edging past the market forecast. A giant like McDonald's has gained the humble 14% YTD. The company is currently trading at more than $1900 which is a surge of approximately 44% year to date.īased on the last close, the stock outperforms some of its major peers, with the closest one being Domino's with shares up 33% YTD. Nevertheless, shares started building momentum at the beginning of June and soared over 11% after the Q2 report. Shares started the year at $1320 apiece but lost steam since the Q1 earnings. Chipotle's RiseĬhipotle had an amazing run in 2021. The company looks expensive as it trades at a P/E ratio of 74, nearly double the multiple of names such as Domino's ( DPZ) and Wendy's ( WEN) and almost triple the one of a giant like McDonald's ( MCD).ĭespite the high multiple, I do believe that Chipotle has a sound future with huge upside potential, but there are a few things investors should consider before putting their money in this hot stock. Such a big leap in a relatively short period of time has attracted attention, with an analyst from Raymond James among the first to question the sustainability of this outstanding growth. Eventually finding support and rising up more than 40% in the last 3 months alone. The shares did drop from the mid of April until the end of May. Hapabapa/iStock Editorial via Getty ImagesĬhipotle ( NYSE: CMG) is up 44% year to date outperforming some of its major peers in the industry.
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