Chipotle Mexican Grill (CMG : NYSE : US$391.78)
An analyst at Investment Technology Group (ITG) stated that a measurement of sales growth at the casual food chain seems to be slowing. The ITG analyst forecast second-quarter revenue of $700 million, below Wall Street’s consensus of about $707 million.
The analyst also noted that revenue at restaurants open at least a year seemed to be decelerating – forecasting second-quarter growth between 7-8%, compared to 12.7% in the first quarter and 10% in the same period last year.
ITG also noted that despite its lower-than-consensus sales forecast, it still expects relatively strong growth for the casual food chain. “In our view, Chipotle is still experiencing industry-leading growth, and is still expected to report strong sales at quarter end,” the ITG analyst stated. Chipotle has been a standout among restaurant companies for several years as customers have flocked to the chain, the AP noted. That has made it a darling on Wall Street.
In April, the Denver-based company said its first-quarter net income rose by 35% as more diners visited its restaurants and it benefited from priceincreases. Chipotle, which has more than 1,200 restaurants, plans to add another 155-165 this year.