Service Innovations Power Chipotle’s Growth in the Long Term
Service Innovations Power Chipotle’s Growth in the Long Term Full year revenue totaled $4.1 billion, an increase of 27.8%, with a full year comp of 16.8% EPS of 14.13/share grew 35% YOY Earnings growth will come from restaurant efficiency Fast casual restaurant sector is not a fad, but rather a shift in consumer taste $700/share price target based on 2016 earnings Sales & Analysis Chipotle Mexican Grill’s (CMG) stock sold off almost 7% on February 4, 2015, after reporting quarterly numbers of a stellar 16.1% comp, revenue of $1.1 billion, and EPS of 3.84, versus the street estimate of 3.80/share. Full year revenue totaled $4.1 billion, an increase of 27.8%, with a full year comp of 16.8% and EPS of 14.13. EPS growth of 35% outpaced sales growth as the higher comps in food and the menu increase (in price) allowed CMG to leverage labor and occupancy lines at the restaurant level. Guidance for 2015 is low to mid-single digits, mostly because comps in th