April 25, 2024 9:27 am | 2 minutes of reading |
27% profit every 20 days?
This is Nic Chahine’s average with option purchases. No selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. It has an 83% profit margin. Here’s how he does it.
Chipotle Mexican Grill Inc (NYSE: CMG ) shares traded higher on Thursday after the company reported better-than-expected financial results. Multiple analysts raised their price targets on the stock after the print.
- First quarter revenue: $2.702 billion, versus estimates of $2.675 billion
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- Q1 EPS: $13.37, versus estimates of $11.68
Chipotle’s total revenue for the first quarter was up 14.1% year-over-year. Comparable restaurant sales increased 7% year-over-year due to higher transactions and a 1.6% increase in the average check. Digital sales accounted for 36.5% of food and beverage revenue. Operating margin was 16.3% in the first quarter, compared to 15.5% year-over-year.
Chipotle said it opened 47 new restaurants in the quarter, and 43 of those locations included Chipotlane. The company also repurchased $25 million of its stock in the first quarter and has $399.1 million remaining under its share repurchase authorization.
“We had another outstanding quarter, driven by our performance improvement and successful marketing initiatives, including Barbacoa Braised Beef and Al Pastor Chicken, which drove strong sales and transactions,” said Brian NicolChairman and CEO of Chipotle.
“The results we’re seeing from our focus on developing exceptional people, making delicious food and being fast-paced give me confidence that we can achieve our long-term goal of more than doubling our business in North America and expanding internationally.”
Chipotle said it expects full-year 2024 comparable restaurant sales growth to be in the mid-high single digits. The company expects to open between 285 and 315 new restaurants in 2024, with more than 80% of them including Chipotlane.
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Analyzer changes:
- TD Cowen analyst Andrew Charles maintains a buy rating on Chipotle and raises his price target to $3,500 from $3,400.
- The Stephens & Co analyst. Jim Salera maintains an equal weight on Chipotle and raises his price target to $3,050 from $3,010.
- Baird analyst David Tarantino maintains an outperform rating on Chipotle and raises his price target to $3,500 from $3,250.
- Wedbush analyst Nick Setian maintained Chipotle at neutral and raised his price target to $3,200 from $2,850.
- Oppenheimer analyst Brian Bittner reiterated Chipotle’s outperform rating and raised his price target to $3,300 from $2,825.
CMG Price Action: Shares of Chipotle were up 4.04% at $3,045 at the time of writing, according to Benzinga Pro.
Photo: Shutterstock.
27% profit every 20 days?
This is Nic Chahine’s average with option purchases. No selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. It has an 83% profit margin. Here’s how he does it.
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