Dallas, Texas 07/22/2013 (Financialstrend) – Chipotle Mexican Grill, Inc.(NASDAQ:CMG) released its earnings after the market closed on 18th July 2013, showing a 7.6% increase in net income on year on year basis, increase in Revenue to 18.6 % over this period and double digit increase in Earnings per share of 10.2%.
The Burrito chain has added 44 restaurants in current quarter. This increased Chipotle’s tally of restaurants aggregates to 1502 across globe.
The street witnessed towering rise of 8.55% over previous day, CMG’s stock closed at $408.97 on 19th July 2013 and reported 52 week high on the same day of $410.12 on the strengths of healthy numbers of Q2FY13 and positive future outlook.
Consumer spending saw trends of rebounding in May as basic income increased. The effect of the rise in disposable income could simultaneously be seen in rise of restaurant sales by 550 bps. The 20 year old burrito maker is therefore all set to overcome the shortcomings and challenges it faced in October 2012 as the foot traffic is also expected to improve while going forward this year.
The decision of no menu price increase for the rest of 2013 indicates simple strategy of attracting customers over hoarding profits. This might mean sacrificing earnings in short to medium term with increase in food prices, but should pay off in the long run.
To maintain its sales growth, this Denver based company has added one more delight in its product mix and has started offering catering. Across all restaurants in California the all new delight “sofritas”, a seasoned braised tofu was introduced which today accounts for 4-5% of sales of its total product mix. Catering which was launched in Denver has expanded to more than dozen markets. The company is also improving its throughput metrics to improve on speed of their service.