Is Chipotle Stock a Buy After Sales Surprise?
It hasn't been smooth sailing for Chipotle Mexican Grill (NYSE: CMG) following the departure of its highly regarded CEO in the fall of 2024, as the fast-casual Tex-Mex restaurant operator has struggled with comparable-store sales growth ever since. However, the company gave investors some good news when it reported its first-quarter (Q1) results -- a surprise uptick in same-store sales.
Let's dive into its quarterly results and prospects to see if this could be the start of a turnaround.
After seeing its same-store sales sink by 2.5% in the fourth quarter, the restaurant operator turned in a surprise 0.5% increase in Q1. Traffic increased by 0.6%, while the average transaction edged 0.1% lower. The company credited the improvement to the return of its limited-time Chicken al Pastor offering and the introduction of its new Cilantro-Lime Sauce. It added that it has seen a nice step up in April, helped by the Easter shift and strong momentum with its Cilantro-Lime Sauce.
Source Fool.com
