Chipotle Mexican Grill, Inc. (NYSE: CMG) reported third-quarter results that exceeded expectations, highlighted by better-than-expected same-store sales growth of 11% versus 9% expected and an increase in net income from $38.2 million last year to $98.6 million.
Flawless Quarter
Chipotle's quarter shows if there are any flaws in the business model it is "hard to see them with the naked eyes," Morgan Stanley analyst John Glass wrote in a note. Specifically, comps and traffic both accelerated on a one-year and two-year basis due to continued momentum in digital and delivery.
Digital sales rose 88% from last year and accounted for 18.3% of total revenue, Stephens analyst Will Slabaugh wrote in a note. This marks a "national evolution" for the company while loyalty members rose from five million last quarter to seven million. The growth in loyalty also puts management in a better position to target lower frequency and ...
