It seems like Winter Storm Stella didn’t affect Chipotle Mexican Grill Inc. (CMG - Free Report) . The burrito chain rose 2% to $405.42 after data-analysis firm M Science predicted first-quarter sales would easily beat Wall Street’s estimates.
The research firm came to the prediction after studying Chipotle’s same-store sales during February and the first 10 days of March and multiple data sets and proprietary models.
Bloomberg reported that analysts expect first quarter same-store sales to grow almost 15%. A huge sales growth prediction for the company, especially coming off a decline of 4.8% in the previous three months and the 30% plunge in the same period a year ago from a foodborne-illness outbreak.
On top of the positive sales growth, the Mexican food chain has been going through a transformation internally to draw back investors.
Aside from taking visible steps in showing customers that the restaurant is safe again from the food-safety scandal, the company announced last Friday that four members of the board would not stand for re-election in May. The company appointed four new directors in December, including one from Bill Ackman's Pershing Square Capital Management (PSHZF - Free Report) , Reuters reported.
Chipotle denied that the decision was the result of pressure from Ackman, a major shareholder, and activist investor. But many suspected otherwise.
The Mexican chain also reported its plan to close all 15 of its ShopHouse Southeast Asian Kitchen restaurants by March 17. The move of closing all ShopHouse comes as its recovery strategy from the massive food safety problem that the company suffered towards the end of 2015.
Though it may look like things are looking up for Chipotle, investors might want to wait before buying Chipotle's stock. However, investors should pay close attention to the company next month when its quarterly report is set to release in late April.
Chipotle is currently Zacks Rank #3 (Hold) with a style score "A" in momentum.
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It seems like Winter Storm Stella didn’t affect Chipotle Mexican Grill Inc. (CMG - Free Report) . The burrito chain rose 2% to $405.42 after data-analysis firm M Science predicted first-quarter sales would easily beat Wall Street’s estimates.
The research firm came to the prediction after studying Chipotle’s same-store sales during February and the first 10 days of March and multiple data sets and proprietary models.
Bloomberg reported that analysts expect first quarter same-store sales to grow almost 15%. A huge sales growth prediction for the company, especially coming off a decline of 4.8% in the previous three months and the 30% plunge in the same period a year ago from a foodborne-illness outbreak.
On top of the positive sales growth, the Mexican food chain has been going through a transformation internally to draw back investors.
Aside from taking visible steps in showing customers that the restaurant is safe again from the food-safety scandal, the company announced last Friday that four members of the board would not stand for re-election in May. The company appointed four new directors in December, including one from Bill Ackman's Pershing Square Capital Management (PSHZF - Free Report) , Reuters reported.
Chipotle denied that the decision was the result of pressure from Ackman, a major shareholder, and activist investor. But many suspected otherwise.
The Mexican chain also reported its plan to close all 15 of its ShopHouse Southeast Asian Kitchen restaurants by March 17. The move of closing all ShopHouse comes as its recovery strategy from the massive food safety problem that the company suffered towards the end of 2015.
Though it may look like things are looking up for Chipotle, investors might want to wait before buying Chipotle's stock. However, investors should pay close attention to the company next month when its quarterly report is set to release in late April.
Chipotle is currently Zacks Rank #3 (Hold) with a style score "A" in momentum.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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