Why Chipotle Stock Popped 14.2% This Week
Shares of Chipotle Mexican Grill (NYSE: CMG) rose as much as 14.2% this week, according to data from S&P Global Market Intelligence. The Mexican fast-casual chain posted a mixed quarterly report, but investors still were excited about the news and sent the stock soaring in the last few trading days. As of 2:08 p.m. ET on July 28, the stock is up 13.7% this week.
Chipotle reported its second-quarter earnings on July 26. Revenue was up 17% year over year to $2.2 billion, driven by comparable-store sales growth of 10.1% and new restaurant openings. According to management, inflation is hitting the business hard with rising costs of things like beef and avocados, but the company has been able to mitigate these concerns by raising prices for customers.
Even so, revenue came in below analyst expectations, which were for $2.24 billion in revenue for the quarter. However, earnings per share (EPS) beat analyst expectations, hitting $9.30 for the period compared to an expected $9.04. While not a huge deal for long-term investors, this earnings beat is likely why Chipotle stock soared over 10% the day following its earnings release.
Source Fool.com
