Chipotle’s expansion offsets flat same-store sales, StockStory says
The analysis points to rapid restaurant growth and supplier leverage, while noting that sales at existing locations have remained flat.
Key takeaways
- Chipotle had 4,186 locations in its latest quarter.
- StockStory said same-store sales were flat over two years.
Chipotle’s rapid restaurant growth and supplier leverage are positives, while flat same-store sales are a concern, according to a StockStory analysis published Oct. 6. The report said the chain had 4,186 locations in its latest quarter and averaged 8.6% annual location growth over the past two years.
StockStory said Chipotle’s $12.42 billion in revenue over the past 12 months gives it leverage in negotiations with suppliers. But same-store sales were flat over the past two years, indicating that demand at existing locations had barely increased, the analysis said.
The report said the positives outweighed the negatives. It cited a six-month share decline of 7.8% to $30.90, while the S&P 500 gained 16.8%. As of 16:33 UTC on Oct. 6, Chipotle shares traded at $31.19, up 1.09% since the previous close.
This article was produced with the help of AI technology. Source: Yahoo Finance
