Boston, MA 08/22/2214 (wallstreetpr) – At the time when Chipotle Mexican Grill, Inc. (NYSE:CMG) is approaching $700 stock price, investors are in a dilemma as to what to do with Chipotle Mexican Grill, Inc. (NYSE:CMG) stocks. The rise in stock price is mainly due to the expectations of strong sales in the third quarter. The same store sales are showing a growth of almost 19-20%.
The Positive Research Note
The expectations are released in a research note prepared by Cleveland Research. It states that Chipotle is set to post strong numbers resulting from the overall growth in its key business metrics. Chipotle Mexican Grill, Inc. (NYSE:CMG) reported strong set of second quarter earnings last month. The revenues of Chipotle rose 28.6% to $1.05 billion in the second quarter better than the analysts’ estimates of $989 million. The net income rose 25.5% to come at $110.3 million in second quarter.
The Expectations
As per the report, there are several factors that will positively affect the performance of Chipotle. The traffic in same-store sales is showing significant rise in the third quarter. The higher prices and progress into catering will further add up in the performance of Chipotle Mexican Grill, Inc. (NYSE:CMG). The menu prices have remained steady. The menu prices in U.S. were increased by 6.25% to 6.5%. If the progress in the mentioned variable continues, the sales will climb by 19-20% as compared to the expected growth of 15%.
The Change In Preference
Chipotle has got around 1,680 restaurants. The diners are not shying away from visiting the restaurants to customize their meals. They are in constant search for better food options. They are seeking the foods that are different from the low-quality and low-priced fast food. Also, Chipotle Mexican Grill, Inc. (NYSE:CMG) focus on catering services to its stores continues. As of now, the analysts expect Chipotle to post the earnings of $3.81 per share in the third quarter. The revenues of Chipotle are expected to come at $1.06 billion in the third quarter.
