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Best Idea Chipotle Mexican Grill’s Growth Runway is Enormous

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Image Shown: Chipotle Mexican Grill Inc’s restaurant level unit economics continued to improve in the third quarter of 2021, supporting the company’s growth trajectory. Image Source: Chipotle Mexican Grill Inc – Third Quarter of 2021 Non-GAAP Reconciliation Presentation By Callum Turcan On October 21, Chipotle Mexican Grill Inc (CMG) reported third-quarter 2021 earnings that beat both consensus top- and bottom-line estimates. Comparable restaurant sales grew 15% year-over-year last quarter as Chipotle’s e-commerce business held up well, with digital sales up 9% year-over-year (representing 43% of its total sales during this period), while customers resumed in-store dining activities in earnest. We liked what we saw in Chipotle’s latest earnings report. Shares of CMG are included as an idea in the Best … Read more

Best Idea Chipotle Rockets Higher!

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Image Shown: We include Chipotle Mexican Grill Inc an as idea in the Best Ideas Newsletter portfolio. On July 21, shares of CMG surged higher after the firm reported a stellar earnings report after the market close on July 20. By Callum Turcan On July 20, Chipotle Mexican Grill Inc (CMG) reported second-quarter 2021 earnings that beat both consensus top- and bottom-line estimates. The company’s comparable store sales boomed higher by over 31% year-over-year as Chipotle’s customer base returned to its in-store dining offerings in the wake of coronavirus (‘COVID-19’) containment efforts getting eased across the US. Its digital sales were up almost 11% year-over-year and represented a little under half of its total revenues. Chipotle’s momentum is expected to … Read more

Chipotle Improving Its Digital Menu to Support Its E-commerce Growth Runway

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Image Shown: Over the past year, shares of Chipotle Mexican Grill Inc have been on an upward tear, supported by the restaurant’s improving omni-channel selling capabilities. By Callum Turcan Shares of Chipotle Mexican Grill Inc (CMG) surged higher during normal trading hours March 9 after the firm announced it was adding customizable quesadilla offerings to its digital menu in the US and Canada starting March 11. This offering is only available for customers ordering while using Chipotle’s digital platforms (potentially due to the longer preparation times) and will likely require new cooking equipment at the company’s restaurants. The company offers both home delivery and curbside/drive-thru pickup services (including its order ahead and pickup services) through its digital platform. We continue … Read more

Chipotle, Domino’s Continue to Deliver for Shareholders

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Image Shown: Domino’s Pizza Inc aims to grow its market share in the US by leaning heavily on its delivery and digital operations, a realm the firm has significant competitive advantages in, as compared to leaning on carryout operations at physical stores. Image Source: Domino’s Pizza Inc – January 2021 IR Presentation By Callum Turcan In the restaurant industry, one thing the coronavirus (‘COVID-19’) pandemic has made clear is that having drive thru operations, a strong online presence and efficient delivery services will be key to meeting consumer demand going forward. Physical restaurant locations that rely on indoor dinning will become relevant once again when the pandemic is contained, something the ongoing distribution of COVID-19 vaccines should help accomplish, but … Read more

Chicken Sandwich Wars Heating Up In the US

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Image Shown: Rivals in the quick-service restaurant space are aggressively competing for share in the fast-growing premium chicken sandwich category following Popeyes’ considerable success the past couple years. Source: Images/logos property of the respective companies. By Callum Turcan and Brian Nelson, CFA Nothing has been the same in the fast-food industry since Popeyes launched its first nationwide chicken sandwich August 12, 2019. The release of the delicious chicken sandwich from the company named after Gene Hackman’s character Popeye Doyle in the 1971 film The French Connection may even have changed the fast-food industry as we know it. Popeyes’ “tender all-white meat chicken breast fillet, marinated in (its) authentic blend of Louisiana seasonings, then hand battered and breaded in (its) all … Read more