Last night, Chipotle Mexican Grill announced a blowout first quarter. Same-store sales surged 12.7 per cent. Earnings per share jumped to $1.97, beating analysts’ estimates calling for $1.93.Shares are off slightly today, but they’re still up 27 per cent year-to-date.
And you can tell from the tone from John Glass’ latest note that he regrets having only an “equal-weight” weighting on the stock.
Glass is Morgan Stanley’s restaurant analyst. Here’s what he wrote this morning:
Quarters like these make us question why we ever got off this stock. Results show CMG is not missing a beat, even as some others have seen recent trends falter, while EPS growth appears to be reaccelerating. Food inflation will rear its head again incoming quarters but not enough to derail shares.
What now, John Glass?