New concepts are behind the strong growth of
Chipotle Mexican Grill (CMG), Investor’s Business Daily reported.
The Denver-based company’s restaurants focus on burritos
and tacos made from sustainably raised and organic ingredients, which have
becone a hit with consumers loking for reasonably-priced, fresh made food,
reported IBD.
Chipotle has 1,000 restaurants in the U.S. and is
expanding slowly into foreign markets. The company’s sales growth was 20% in
the last quarter, accelerated from 12% and 16% in the prior two periods. While
its sales growth is below the minimum for market leaders historically, it isn’t
bad considering the economy, according to IBD.
Earnings were a solid 33% in the latest quarter.
For the full year, analysts see earnings rising 29% in 2010 and 19% in 2011,
according to IBD.
CMG is a Cabot Market Letter stock.