Chipotle Mexican Grill (NYSE:CMG) is trading at new all-time highs after beating earnings estimates. Some of the numbers that stand out:
- 10% same-store growth vs 8.4% estimates
- 99% increase in digital sales, which now account for 18% of all sales
- 39% earnings growth
- 13% revenue growth
- 20.9% operating margin
- 150 new restaurant openings are expected
- Authorized $100 share buyback
- Labor cost fell 130bps to 25.7% of sales
6.2% of CMG’s float is short which represent about 3.5 days to cover. There is a potential for a short squeeze tomorrow. CMG traded between 763 and 770 in the after-hours session. If we see a breakout above 770 near the open, there might be a run to $800. The previous all-time highs near 760 should act as potential support.