Tom Reese/Paul Rubillo, Dividend.com
Shares of Chipotle Mexican Grill, Inc. (CMG) are up 11% so far today, after the company reported fourth quarter profits of $17 million, or 52 cents per share, for the quarter ended Dec. 31, from $17.5 million, or 53 cents per share, in the same quarter last year.
The company's sales increased 20 percent to $345.3 million from $288.9 million, helped by 39 new restaurants it opened during the quarter.
The company reported same-store sales rose 3.5 percent in the quarter, as a result of higher menu prices, which offset a decline in customer visits.
Looking ahead, management is forecasting same-store sales to increase in the low-single digits for the year, while planning to open 120-130 new locations.
The Bottom Line
Shares of CMG are way off all-time highs hit in December of 2007, when it traded at $150 a share. The stock has technical support in the $36-39 price range. If the shares can firm up, we see overhead resistance around the $64-69 price levels. We do not currently rate this non-dividend paying stock, but we do monitor the news closely and use it as a gauge for the fast food sector.
Chipotle Mexican Grill (CMG) does not currently pay a dividend.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
