Chipotle Mexican Grill, Inc. (CMG), the fast food chain operator, recently reported better-than-expected third quarter results. Earnings per share (EPS) surged 83.1% year over year to $1.08, surpassing the Zacks Consensus Estimate of 88 cents. Menu price increase, new restaurant openings and selective cost cutting measures drove the growth in EPS.   Revenues for the reported quarter ascended 13.8% to $387.6 million driven by new restaurant openings and increase in comparable-store sales. The increase in comps was driven by 6% menu price increase, which in turn, helped offset the 2.5% decline in traffic counts. Chipotle was able to increase menu price, when other restaurant operators offered discounts to woo consumers in a recession. The average check increased by 5%.   Comparable-store sales growth has been decelerating since the second quarter of 2008 –when it increased 7.1% – although it remained positive, showing resilience in a turbulent environment. After ...

For Immediate Release

Chicago, IL – October 20, 2009 – Zacks.com announces the latest Industry Outlook. Today, Zacks Equity Research discusses the Restaurants sector, including BJ’s Restaurants Inc. (BJRI), Darden Restaurants Inc. (DRI), Buffalo Wild Wings Inc. (BWLD), McDonald’s Corporation (MCD) and Chipotle Mexican Grill Inc. (CMG).

Here is the latest on the Restaurants sector:

In the midst of what is expected to be a tepid recovery, there are three potential drivers of net income growth: Unit Expansion, Improved Same-Store Sales and Cost Cuts.

There seems little chance that upside will come from more aggressive unit expansion, as most of the companies have either scaled back or postponed further unit development. BJ’s Restaurants Inc. (BJRI) plans to grow the unit base by 12% in fiscal year 2009, much lower than 21% achieved in fiscal year 2008.

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The Restaurant Industry has been facing extremely tough challenges due to the ongoing economic turmoil. With rising unemployment and lower discretionary spending, we believe it will be too early to predict improvement in the industry, which is grappling with sluggish consumer demand. Although the current economic indicators show some signs of improvement, we believe that job losses will continue to adversely impact the restaurant industry even several months after the recovery is on track. The U.S. restaurant industry, which constitutes fast food, casual dining and upscale chains, is facing its toughest times in three decades. A report by market research firm, NPD Group asserted that U.S. restaurant guest traffic plunged 2.6% for the quarter ended May 31, the steepest fall in 28 years. However, the quick-service restaurants (traffic down 2%), which are generally less susceptible to an economic downturn, are faring better than casual dining restaurant ...

Chipotle Mexican Grill Inc.’s (CMG) share price has moved into oversold territory with a stochastic value of 16.87. The Zacks #1 Rank (“Strong Buy") stock has topped the Zacks Consensus Estimate in 3 of last 4 quarters with an average surprise of 17.97%, or 12 cents per share. Moreover, the full-year Zacks Consensus Estimate has moved up by 41 cents over the past 2 months to $3.41 per share."CMG" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research

Visa Inc. (...

For Immediate Release

Chicago, IL – August 6, 2009 – Four free stock picks are being made available today on Zacks.com. The industry’s leading independent research firm highlights one Zacks #1 Rank Strong Buy or a Zacks #2 Rank Buy stock for each of the four main styles of investing: Aggressive Growth, Growth & Income, Momentum, and Value.

The four highlighted picks are: CA, Inc. (CA), Ross Stores Inc. (ROST), Chipotle Mexican Grill, Inc. (CMG) and Universal Health Services, Inc. (UHS).      Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks are offered free at http://at.zacks.com/?id=5607

Zacks #1 Rank Stocks have nearly tripled the S&P 500 since 1988, producing an average annual return of +26%. Performance has been notable even during volatile and down times. For example, during the last bear market, 2000-2002, the market tumbled -37.6% – but Zacks #1 Rank stocks gained

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Chipotle Mexican Grill, Inc. (...

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

Amkor Technology Inc (AMKR) AutoNation Inc (AN) Avery Dennison Corp (AVY) Banco Bilbao Vizcaya Argentaria SA (BBV) Banco Santander SA (STD) Brush Engineered Material (BW) Cabela's Inc (CAB) Capella Education Co (CPLA) Chipotle Mexican Grill Inc (CMG) Churchill Downs Inc (CHDN) CNOOC Ltd (CEO) CPFL Energia SA (CPL) Drew Industries Inc (DW) Dynamics Research Corp (DRCO) Encore Capital Group Inc (ECPG) Expedia Inc (EXPE) F5 Networks Inc (...

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

3Com Corp (COMS) 3M Co (MMM) American Software Inc (AMSWA) Baidu Inc (BIDU) Buckeye GP Holdings LP (BGH) CA Inc (CA) Carlisle Companies Inc (CSL) CarMax Inc (KMX) Carter's Inc (CRI) Cheesecake Factory Inc (CAKE) Chipotle Mexican Grill Inc (CMG.B) Coach Inc (COH) Ctrip.com International Ltd (CTRP) Digi International Inc (DGII) Dresser-Rand Group Inc (DRC) F5 Networks Inc (FFIV) First Financial Holdings Inc (FFCH) ...

Chipotle Mexican Grill Inc.'s (CMG) share price has moved into oversold territory with a stochastic value of 12.46. Analysts have been increasing their full-year earnings estimates on the Zacks #1 Rank ("Strong Buy") company, with the consensus up 43 cents over the past 30 days to $2.99 per share.

Zacks Investment Research