La cadena de opciones muestra datos clave de las opciones de acciones de Chipotle Mexican Grill a varios precios de ejercicio y fechas de vencimiento. Los operadores utilizan esta información para analizar posibles operaciones y evaluar el sentimiento del mercado para Chipotle Mexican Grill..

Chipotle Mexican Grill (NYSE:CMG) Bolsa, Cadena de Opciones

Chipotle Mexican Grill

Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $9.9 billion in 2023. The Mexican concept is predominately company-owned, although it recently inked a development agreement with Alshaya Group in the Middle East. It had a footprint of nearly 3,440 stores at the end of 2023, heavily indexed to the United States, although it maintains a small presence in Canada, the UK, France, and Germany. Chipotle sells burritos, burrito bowls, tacos, quesadillas, and beverages, with a selling proposition built around competitive prices, high-quality food sourcing, speed of service, and convenience. The company generates its revenue entirely from restaurant sales and delivery fees.

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Descubre las recomendaciones de expertos en &#39;Halftime Report&#39; de CNBC, con foco en movimientos clave de Berkshire Hathaway, Chipotle y más.

Chipotle, Berkshire Hathaway y otras 2 acciones en &#39;Final Trades&#39; de CNBC

Chipotle Mexican Grill, Inc. Common Stock

Chipotle Mexican Grill Inc

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Baird analyst David Tarantino maintains Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) with a Outperform and raises the price target from $62 to $70.

Price Target

Analyst Ratings

Baird Maintains Outperform on Chipotle Mexican Grill, Raises Price Target to $70

WIIM

Chipotle shares are trading lower after the company reported a Q3 revenue miss.

During an interview, Interim CEO of&nbsp;Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>), Scott Boatwright, shared insights into the company&#8217;s third-quarter performance and future strategies.
What Happened: On Tuesday, before Chipotle&#8217;s <a href="https://www.benzinga.com/news/earnings/24/10/41611783/chipotle-q3-earnings-highlights-revenue-miss-eps-beat-store-guidance-update-strong-results-led-by-t">third-quarter earnings</a> call, Boatwright discussed a range of topics during his appearance on CNBC Overtime.
During the conversation, he underscored the company&#8217;s initiatives to enhance service times, which have significantly boosted revenue growth. Boatwright also revealed that Chipotle has been investing in automation and creating new roles.
He talked about the restaurant&#8217;s recruitment drives, especially during the &#8220;Burrito Season&#8221; and back-to-school period and disclosed that a new AI tool has cut the hiring process time by 75%, resulting in a surge in application flow.
See Also:&nbsp;<a href="https://www.benzinga.com/markets/equities/24/10/41590829/ford-amd-trump-media-microstrategy-and-tesla-why-these-5-stocks-are-on-investors-radars-today?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Ford, AMD, Trump Media, Microstrategy, And Tesla: Why These 5 Stocks Are On Investors&#8217; Radars Today</a>
&#8220;We just launched an AI tool that helps us onboard people in our restaurants that shortens the time from applicant to hire by 75% &#8230; we&#8217;re better staffed today than we have been in many, many years,&#8221; he stated.
Boatwright also expressed <a href="https://www.benzinga.com/startups/24/08/40556572/from-chipotle-to-starbucks-brian-niccols-113m-pay-package-and-its-implications-for-the-coffee-chain">confidence in his predecessor</a>, Brian Niccol, who has moved to Starbucks, and assured investors that the company would maintain its focus on the consumer and deliver high-quality culinary experiences.
He also touched on the company&#8217;s technological advancements, including the integration of AI models with their&nbsp;Consumer Data Platform and loyalty&nbsp;program, and mentioned the development of a new produce slicer.
We&#8217;re developing bespoke and unique technologies that are more long-range but we know will add a ton of value in the future,&#8221; the interim CEO said.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">&quot;We just launched an <a href="https://twitter.com/hashtag/AI?src=hash&amp;ref_src=twsrc%5Etfw">#AI</a> tool that helps us onboard people in our restaurants that shortens the time from applicant to hire by 75% &#8230; we&#39;re better staffed today than we have been in many, many years,&quot; says <a href="https://twitter.com/search?q=%24CMG&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$CMG</a> interim CEO Scott Boatwright on labor. <a href="https://t.co/W17DycOctm">pic.twitter.com/W17DycOctm</a>
&mdash; CNBCOvertime (@CNBCOvertime) <a href="https://twitter.com/CNBCOvertime/status/1851362724887822718?ref_src=twsrc%5Etfw">October 29, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Why It Matters: Chipotle&#8217;s third-quarter results showed a 13% year-over-year increase in revenue, reaching $2.79 billion, although it fell short of the Street consensus estimate of $2.82 billion.
The third-quarter earnings report marked the first since Niccol announced his departure.
In <a href="https://www.benzinga.com/news/earnings/24/07/39943336/chipotle-mexican-grill-q2-earnings-revenue-beat-eps-beat-comps-up-11-on-stronger-demand-trends-and-">the second quarter</a>, Chipotle exceeded expectations by delivering strong revenue and earnings growth. At the time, the company reported $2.97 billion in revenue and adjusted earnings of 34 cents per share.
Meanwhile, regarding the streamlined hiring process, earlier this month, <a href="https://www.benzinga.com/markets/equities/24/10/41460915/chipotle-rolls-out-ai-enhanced-hiring-platform-across-over-3-500-locations-cuts-recruitment-time">Chipotle announced a partnership</a> with Paradox to streamline the hiring process for its restaurant teams.
The AI-powered platform was expected to reduce hiring times for in-restaurant positions by up to 75%, allowing General Managers to focus more on daily operations and guest hospitality.
CMG Price Action: At the time of writing, Chipotle Mexican Grill stocks were down by 5.27% in the after-hours session. The company ended the Tuesday session at $60.49, down 0.18%, <a href="https://pro.benzinga.com/dashboard">according to Benzinga Pro</a>.
Image Courtesy: Chipotle
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Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.

Restaurants

General

Chipotle Is Using An AI Tool To Slash Hiring Time By 75% During Busy 'Burrito Season'

Buybacks

Chipotle Board Authorizes Additional $900M Stock Repurchase Program, Expanding On Previous Authorizations; Program May Be Modified Or Discontinued At Any Time

Restaurant stock Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) reported third-quarter financial results after the <a href="https://www.benzinga.com/earnings">market close Tuesday.</a>
Here are the key highlights.
What Happened: Chipotle reported third-quarter revenue of $2.79 billion, up 13% year-over-year. The total missed a Street consensus estimate of $2.82 billion, according to data<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent102924&amp;t=be2bearmibe3na1"> from Benzinga Pro.</a>
The company reported adjusted earnings of 27 cents per share in the third quarter, beating a Street consensus estimate of 25 cents per share.
Comparable restaurant sales were up 6% in the third quarter. The comparable sales came from a mix of higher transactions and a 2.7% increase in average check, the company said. 
Digital sales made up 34% of total food and beverage revenue in the third quarter.
Chipotle's operating margin was 16.9% in the quarter with a restaurant level operating margin of 25.5%.
The company opened 86 new company-operated restaurants in the quarter and one international licensed restaurant. Of the new locations, 73 had a Chipotlane.
"Our focus on exceptional people, food and throughput and the long-awaited return of Smoked Brisket drove another quarter of strong results led by transaction growth," Chipotle interim CEO Scott Boatwright said.
Read Also: <a href="https://www.benzinga.com/general/education/24/10/41492239/mcdonalds-once-owned-90-of-chipotle-why-it-sold-stake-too-early-missed-73-billion-opportunity">McDonald&#8217;s Once Owned 90% Of Chipotle: Why It Sold Stake Too Early, Missed $73 Billion Opportunity</a>
What's Next: The company's guidance calls for restaurant sales growth to be in the mid-to-high-single-digit range for the full fiscal year.
Chipotle expects to open 285 to 315 new company-operated restaurants in the full fiscal year, with 80% having a Chipotlane.
In 2025, the company expects to open 315 to 345 new company-operated restaurants, with over 80% having a Chipotlane.
Boatwright highlighted the company's employees as the "backbone of Chipotle."
"We will continue to execute against our five key strategies that help us win today, while we grow our future," Boatwright said. "This will help us to achieve our long-term target of reaching 7,000 restaurants in North America and move towards a more global brand."
CMG Price Action: Chipotle stock is down 6.05% to $56.83 in after-hours trading Tuesday versus a 52-week trading range of $37.49 to $69.26.
Read Next: 
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</ul>
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
<div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534;WATCH LIVE: Chipotle Q3 2024 Earnings Call &#x7C; $CMG" width="500" height="281" src="https://www.youtube.com/embed/tTnZbhz9XOw?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div>
</figure>
Photo courtesy of Chipotle.

Earnings

Movers

Chipotle Q3 Earnings Highlights: Revenue Miss, EPS Beat, Store Guidance Update, 'Strong Results Led By Transaction Growth'

<h3>Gainers</h3>
<ul>
<li>SAG Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SAG#NASDAQ">SAG</a>) stock increased by 6.9% to $5.09 during Tuesday's after-market session. The company's market cap stands at $50.2 million. </li>
<li>Autozi Internet Tech (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AZI#NASDAQ">AZI</a>) stock moved upwards by 6.54% to $0.83. The market value of their outstanding shares is at $87.1 million. </li>
<li>Mynd.ai (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/MYND#AMEX">MYND</a>) shares increased by 6.25% to $1.48. The market value of their outstanding shares is at $67.5 million. </li>
<li>Greenlane Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GNLN#NASDAQ">GNLN</a>) shares rose 5.16% to $3.87. The company's market cap stands at $2.5 million. </li>
<li>ZHONGCHAO (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZCMD#NASDAQ">ZCMD</a>) shares rose 5.1% to $1.44. The market value of their outstanding shares is at $8.0 million. </li>
<li>GEN Restaurant Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GENK#NASDAQ">GENK</a>) shares moved upwards by 5.04% to $9.37. The company's market cap stands at $42.2 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>NWTN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWTN#NASDAQ">NWTN</a>) shares fell 7.0% to $0.97 during Tuesday's after-market session. The market value of their outstanding shares is at $276.8 million. </li>
<li>J-Long Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JL#NASDAQ">JL</a>) stock decreased by 6.99% to $0.74. The market value of their outstanding shares is at $23.3 million. </li>
<li>Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) stock declined by 6.11% to $56.8. The company's market cap stands at $77.7 billion. The company's, Q3 earnings came out today. </li>
<li>Sacks Parente Golf (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPGC#NASDAQ">SPGC</a>) shares fell 5.27% to $1.8. The market value of their outstanding shares is at $3.2 million. </li>
<li>Container Store Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TCS#NYSE">TCS</a>) shares decreased by 5.25% to $7.95. The market value of their outstanding shares is at $27.3 million. As per the news, the Q2 earnings report came out today. </li>
<li>Groupon (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GRPN#NASDAQ">GRPN</a>) stock declined by 4.68% to $10.06. The market value of their outstanding shares is at $399.6 million. 
See Also: <a href="http://www.benzinga.com/money/best-consumer-cyclical-stocks/" title="www.benzinga.com/money/best-consumer-cyclical-stocks/">www.benzinga.com/money/best-consumer-cyclical-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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12 Consumer Discretionary Stocks Moving In Tuesday's After-Market Session

Guidance

Chipotle Mexican Grill Q3 Comparable Restaurant Sales Increase 6.0%

For 2025, Chipotle Mexican Grill Expects 315 To 345 New Company-operated Restaurant Openings With Over 80% Having A Chipotlane

Chipotle Mexican Grill Expects Full Year Comparable Restaurant Sales Growth In The Mid To High-Single Digit Range, 285 To 315 New Company-Operated Restaurant Openings With Over 80% Having A Chipotlane

Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) reported quarterly earnings of $0.27 per share which beat the analyst consensus estimate of $0.25 by 8 percent. This is a 17.39 percent increase over earnings of $0.23 per share from the same period last year. The company reported quarterly sales of $2.79 billion which missed the analyst consensus estimate of $2.82 billion by 0.88 percent. This is a 12.99 percent increase over sales of $2.47 billion the same period last year.

Earnings Beats

Earnings Misses

Chipotle Mexican Grill Q3 2024 Adj EPS $0.27 Beats $0.25 Estimate, Sales $2.79B Miss $2.82B Estimate

Wall Street took a breather on Tuesday, with most major indices treading water, while tech stocks saw gains as investors braced for earnings <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41579487/amd-q3-earnings-preview-can-ai-server-gains-help-narrow-the-semiconductor-gap-with-">reports from mega-cap companies.</a>
The Nasdaq 100 rose 0.7%, buoyed by anticipation around upcoming earnings from Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) and Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), both set to report after market close.
Elsewhere, the S&amp;P 500 was largely unchanged, the Dow Jones dipped slightly, and small-cap stocks underperformed.
In economic news, U.S. job openings dropped by 418,000 to 7.443 million in September 2024 — marking the lowest level since January 2021 and falling short of the market's expectation of 7.99 million.
The Conference Board&#8217;s Consumer Confidence Index surged, posting its largest monthly gain since March 2021. This suggests that while labor demand may be slowing, consumer sentiment remains robust.
Treasury yields continued to climb during concerns over the U.S. budget deficit and political uncertainty ahead of next week's elections. The yield on the 10-year Treasury note hit 4.33%, the highest level since early July.
Notably, gold prices remained resilient, with the precious metal breaking above the all-time high of $2,770 per ounce as investors sought a hard asset amid fiscal concerns.
The crypto market also saw notable gains. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose nearly 4% to reach $72,700, nearing its record high of $73,697 set in March. Dogecoin (CRYPTO: DOGE) continued its momentum with a 10% rally on Tuesday, following an 11% surge on Monday.
<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major US Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day % change</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,500.69</td>
<td>0.7%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,831.03</td>
<td>0.1 %</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>42,272.72</td>
<td>-0.3%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,226.40</td>
<td>-0.8%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:45 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent102824&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) inched 0.1% higher to $581.48.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;dipped 0.3% to $422.93.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.7% to $498.73.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.7% to $221.01.</li>
<li>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up by 1.1%. The Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) lagged, down 1.7%.</li>
</ul>
<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>
Stocks reacting to earnings reports included: 
<ul>
<li>McDonalds Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>), down 0.4%, </li>
<li>Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>), down 1.7%, </li>
<li>PayPal Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>), down over 4%, </li>
<li>Ecolab Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ECL#NYSE">ECL</a>), down 1%, </li>
<li>Enterprise Product Partner L.P. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EPD#NYSE">EPD</a>) down 0.3%, </li>
<li>Royal Caribbean Cruises Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>) up 3.5%, </li>
<li>D.R. Horton (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>), down 8.6%, </li>
<li>Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>), down 3.9%, </li>
<li>MSCI Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSCI#NYSE">MSCI</a>), down 1.5%, </li>
<li>Corning Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLW#NYSE">GLW</a>), up 7.8%, </li>
<li>Ford Motor Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/F#NASDAQ">F</a>), down 8%, </li>
<li>SoFi Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOFI#NYSE">SOFI</a>), down 6.3%, </li>
<li>Incyte Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SWK#NASDAQ">SWK</a>), up 9.4%</li>
</ul>
Among large-cap companies slated to report earnings after the close are Alphabet, Advanced Micro Devices, Visa Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>), Stryker Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SYK#NYSE">SYK</a>), Chubb Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>), Mondelez International Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDLZ#NASDAQ">MDLZ</a>), Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) and Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>).
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Photo: Shutterstock

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Tech Stocks Rise Ahead Of Key Earnings, Gold Smashes Records, Bitcoin Nears All-Time Highs: What's Driving Markets Tuesday?

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. High amounts of trading activity could push option prices to exaggerated or underestimated levels. 
Below are some instances of options activity happening in the Consumer Discretionary sector: 
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<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
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<td>TSLA</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>11/01/24</td>
<td>$260.00</td>
<td>$26.0K</td>
<td>10.6K</td>
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<td>AMZN</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>11/15/24</td>
<td>$190.00</td>
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</tr>
<tr>
<td>ETSY</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>12/20/24</td>
<td>$40.00</td>
<td>$123.0K</td>
<td>1.9K</td>
<td>1.1K</td>
</tr>
<tr>
<td>CMG</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>11/01/24</td>
<td>$61.00</td>
<td>$65.6K</td>
<td>846</td>
<td>869</td>
</tr>
<tr>
<td>MOD</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>11/15/24</td>
<td>$155.00</td>
<td>$56.0K</td>
<td>56</td>
<td>588</td>
</tr>
<tr>
<td>HGV</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>12/20/24</td>
<td>$35.00</td>
<td>$50.0K</td>
<td>3.5K</td>
<td>510</td>
</tr>
<tr>
<td>TCOM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>12/20/24</td>
<td>$65.00</td>
<td>$100.0K</td>
<td>567</td>
<td>403</td>
</tr>
<tr>
<td>MCD</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>03/21/25</td>
<td>$290.00</td>
<td>$45.2K</td>
<td>359</td>
<td>310</td>
</tr>
<tr>
<td>RH</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$330.00</td>
<td>$65.2K</td>
<td>1.0K</td>
<td>303</td>
</tr>
<tr>
<td>CROX</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>11/08/24</td>
<td>$115.00</td>
<td>$32.6K</td>
<td>41</td>
<td>124</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These itemized elaborations have been created using the accompanying table. 
• Regarding TSLA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), we observe a call option sweep with bullish sentiment. It expires in 3 day(s) on November 1, 2024. Parties traded 56 contract(s) at a $260.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $26.0K, with a price of $465.0 per contract. There were 10693 open contracts at this strike prior to today, and today 86702 contract(s) were bought and sold. 
• Regarding AMZN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), we observe a call option sweep with bullish sentiment. It expires in 17 day(s) on November 15, 2024. Parties traded 34 contract(s) at a $190.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $28.7K, with a price of $845.0 per contract. There were 27700 open contracts at this strike prior to today, and today 3329 contract(s) were bought and sold. 
• Regarding ETSY (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ETSY#NASDAQ">ETSY</a>), we observe a put option trade with bullish sentiment. It expires in 52 day(s) on December 20, 2024. Parties traded 1000 contract(s) at a $40.00 strike. The total cost received by the writing party (or parties) was $123.0K, with a price of $123.0 per contract. There were 1954 open contracts at this strike prior to today, and today 1177 contract(s) were bought and sold. 
• For CMG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>), we notice a put option sweep that happens to be bullish, expiring in 3 day(s) on November 1, 2024. This event was a transfer of 250 contract(s) at a $61.00 strike. This particular put needed to be split into 9 different trades to become filled. The total cost received by the writing party (or parties) was $65.6K, with a price of $263.0 per contract. There were 846 open contracts at this strike prior to today, and today 869 contract(s) were bought and sold. 
• For MOD (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOD#NYSE">MOD</a>), we notice a call option trade that happens to be bearish, expiring in 17 day(s) on November 15, 2024. This event was a transfer of 200 contract(s) at a $155.00 strike. The total cost received by the writing party (or parties) was $56.0K, with a price of $280.0 per contract. There were 56 open contracts at this strike prior to today, and today 588 contract(s) were bought and sold. 
• Regarding HGV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HGV#NYSE">HGV</a>), we observe a put option trade with bullish sentiment. It expires in 52 day(s) on December 20, 2024. Parties traded 500 contract(s) at a $35.00 strike. The total cost received by the writing party (or parties) was $50.0K, with a price of $100.0 per contract. There were 3572 open contracts at this strike prior to today, and today 510 contract(s) were bought and sold. 
• Regarding TCOM (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCOM#NASDAQ">TCOM</a>), we observe a call option sweep with bullish sentiment. It expires in 52 day(s) on December 20, 2024. Parties traded 200 contract(s) at a $65.00 strike. This particular call needed to be split into 7 different trades to become filled. The total cost received by the writing party (or parties) was $100.0K, with a price of $500.0 per contract. There were 567 open contracts at this strike prior to today, and today 403 contract(s) were bought and sold. 
• Regarding MCD (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>), we observe a put option sweep with bullish sentiment. It expires in 143 day(s) on March 21, 2025. Parties traded 45 contract(s) at a $290.00 strike. This particular put needed to be split into 15 different trades to become filled. The total cost received by the writing party (or parties) was $45.2K, with a price of $1005.0 per contract. There were 359 open contracts at this strike prior to today, and today 310 contract(s) were bought and sold. 
• Regarding RH (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RH#NYSE">RH</a>), we observe a call option sweep with bearish sentiment. It expires in 80 day(s) on January 17, 2025. Parties traded 24 contract(s) at a $330.00 strike. This particular call needed to be split into 7 different trades to become filled. The total cost received by the writing party (or parties) was $65.2K, with a price of $2720.0 per contract. There were 1011 open contracts at this strike prior to today, and today 303 contract(s) were bought and sold. 
• Regarding CROX (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CROX#NASDAQ">CROX</a>), we observe a put option sweep with bullish sentiment. It expires in 10 day(s) on November 8, 2024. Parties traded 82 contract(s) at a $115.00 strike. This particular put needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $32.6K, with a price of $398.0 per contract. There were 41 open contracts at this strike prior to today, and today 124 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more about unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Options

AMZN

CROX

ETSY

TCOM

TSLA

10 Consumer Discretionary Stocks Whale Activity In Today's Session

Deep-pocketed investors have adopted a bearish approach towards Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in CMG usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 34 extraordinary options activities for Chipotle Mexican Grill. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 35% leaning bullish and 50% bearish. Among these notable options, 14 are puts, totaling $1,104,505, and 20 are calls, amounting to $808,632.
<h3>Projected Price Targets</h3>
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $39.6 and $90.0 for Chipotle Mexican Grill, spanning the last three months.
<h3>Insights into Volume &amp; Open Interest</h3>
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Chipotle Mexican Grill's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Chipotle Mexican Grill's whale activity within a strike price range from $39.6 to $90.0 in the last 30 days. 
<h3>Chipotle Mexican Grill Option Volume And Open Interest Over Last 30 Days</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1730143839_0.png" alt="Options Call Chart" />
<h3>Largest Options Trades Observed:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>CMG</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/16/26</td>
<td>$18.8</td>
<td>$18.5</td>
<td>$18.5</td>
<td>$78.00</td>
<td>$381.1K</td>
<td>3</td>
<td>300</td>
</tr>
<tr>
<td>CMG</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/16/26</td>
<td>$18.8</td>
<td>$18.6</td>
<td>$18.6</td>
<td>$78.00</td>
<td>$172.9K</td>
<td>3</td>
<td>94</td>
</tr>
<tr>
<td>CMG</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>11/15/24</td>
<td>$2.3</td>
<td>$2.25</td>
<td>$2.3</td>
<td>$60.00</td>
<td>$115.0K</td>
<td>5.9K</td>
<td>1.0K</td>
</tr>
<tr>
<td>CMG</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>06/20/25</td>
<td>$5.2</td>
<td>$3.0</td>
<td>$3.0</td>
<td>$53.00</td>
<td>$90.0K</td>
<td>3.3K</td>
<td>0</td>
</tr>
<tr>
<td>CMG</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/16/26</td>
<td>$5.3</td>
<td>$5.0</td>
<td>$5.23</td>
<td>$75.00</td>
<td>$82.9K</td>
<td>482</td>
<td>159</td>
</tr>
</tbody>
</table>

<h3>About Chipotle Mexican Grill</h3>
Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $9.9 billion in 2023. The Mexican concept is predominately company-owned, although it recently inked a development agreement with Alshaya Group in the Middle East. It had a footprint of nearly 3,440 stores at the end of 2023, heavily indexed to the United States, although it maintains a small presence in Canada, the UK, France, and Germany. Chipotle sells burritos, burrito bowls, tacos, quesadillas, and beverages, with a selling proposition built around competitive prices, high-quality food sourcing, speed of service, and convenience. The company generates its revenue entirely from restaurant sales and delivery fees.
After a thorough review of the options trading surrounding Chipotle Mexican Grill, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
<h3>Chipotle Mexican Grill's Current Market Status</h3>
<ul>
<li>Currently trading with a volume of 7,822,788, the CMG's price is up by 2.51%, now at $60.93. </li>
<li>RSI readings suggest the stock is currently may be approaching overbought.</li>
<li>Anticipated earnings release is in 1 days.</li>
</ul>
<h3>Expert Opinions on Chipotle Mexican Grill</h3>
In the last month, 5 experts released ratings on this stock with an average target price of $67.2.
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&#x2A; In a cautious move, an analyst from Oppenheimer downgraded its rating to Outperform, setting a price target of $65. 
&#x2A; Consistent in their evaluation, an analyst from Citigroup keeps a Buy rating on Chipotle Mexican Grill with a target price of $71. 
&#x2A; Maintaining their stance, an analyst from Truist Securities continues to hold a Buy rating for Chipotle Mexican Grill, targeting a price of $71. 
&#x2A; Consistent in their evaluation, an analyst from Evercore ISI Group keeps a Outperform rating on Chipotle Mexican Grill with a target price of $70. 
&#x2A; Maintaining their stance, an analyst from Piper Sandler continues to hold a Neutral rating for Chipotle Mexican Grill, targeting a price of $59. 
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Chipotle Mexican Grill, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.

Check Out What Whales Are Doing With CMG

As Chipotle Mexican Grill, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) prepares to release its third-quarter earnings Tuesday after the market close, investors and analysts are closely watching the company's performance amid recent, robust growth and a significant leadership transition. 
Chipotle outperformed expectations in the <a href="https://www.benzinga.com/news/earnings/24/07/39943336/chipotle-mexican-grill-q2-earnings-revenue-beat-eps-beat-comps-up-11-on-stronger-demand-trends-and-">second quarter</a> when it posted impressive revenue and earnings growth, beating consensus estimates with $2.97 billion in revenue and adjusted earnings of 34 cents per share. 
This marked the fourth consecutive quarter where Chipotle exceeded both top and bottom-line estimates, underscoring the company&#8217;s strong position in the fast-casual dining market.
What To Know: In the second quarter, Chipotle saw an 18.2% year-over-year revenue increase, buoyed by an 11.1% jump in comparable restaurant sales and over 8% transaction growth. Key drivers included popular menu offerings, such as the limited-time return of Chicken Al Pastor, and enhanced operational efficiency initiatives aimed at improving throughput. 
Chipotle's operating margin rose to 19.7%, up from 17.2% a year earlier. Digital sales continued to play a central role, representing 35.3% of total food and beverage revenue — a testament to Chipotle's investments in technology and online ordering platforms that streamline customer experiences and boost transaction volume.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/10/41570418/boeing-eyes-15b-fundraise-as-it-struggles-due-to-strikes-and-mounting-losses-report">Boeing Eyes $15B Fundraise As It Struggles Due To Strikes And Mounting Losses: Report</a>
The company meanwhile repurchased $151.4 million of its stock in the second quarter, signaling confidence in its future growth, and maintained a substantial $647.7 million under its share repurchase authorization, potentially providing a boost to earnings per share.
What To Watch For: Looking ahead, the third-quarter earnings report will be the first since CEO Brian Niccol <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40376234/chipotle-ceo-brian-niccol-jumps-ship-to-starbucks-6-analysts-weigh-implications-und">announced his departure</a>. Niccol led Chipotle through a period of transformation beginning in 2018 and was instrumental in revitalizing Chipotle's brand, expanding its menu and accelerating its digital transformation, which has been crucial to the company's recent growth. 
In his place, Chipotle's board has appointed Scott Boatwright, the company's chief operating officer, as interim CEO. Boatwright has been with Chipotle since 2017 and is recognized for his operational expertise and role in executing Chipotle's turnaround strategy.
As third-quarter results approach, all eyes are on Chipotle's ability to sustain its growth trajectory and adapt to the recent leadership change.
With strong sales momentum, digital engagement and a roadmap for expansion, the company appears well-positioned. However, investors will be watching for any impact of the leadership transition on Chipotle's strategic direction.
Read Also: <a href="https://www.benzinga.com/startups/24/08/40556572/from-chipotle-to-starbucks-brian-niccols-113m-pay-package-and-its-implications-for-the-coffee-chain">From Chipotle To Starbucks: Brian Niccol&#8217;s $113M Pay Package And Its Implications For The Coffee Chain</a>
<h1 class="wp-block-heading">Is CMG A Good Stock To Buy?</h1>
An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation of a particular stock before making a decision.
For example, for Chipotle Mexican Grill, you'll notice that earnings in its last quarter<a href="https://www.benzinga.com/quote/CMG/earnings"> grew 6.25%.</a> As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.
On the valuation side, Chipotle Mexican Grill's price-to-earnings ratio — a measure of how much an investor pays for the company's earnings — is projected to grow 26.4% in the current quarter when compared with last year. That places it below similar businesses McDonald&#8217;s, Starbucks, Yum Brands in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.
There are many different valuation metrics that may help you make a decision. Find more on <a href="https://www.benzinga.com/quote/CMG">Chipotle Mexican Grill's quote page</a>, or if you'd like a deeper dive in an advanced program, try <a href="https://pro.benzinga.com">Benzinga PRO</a> for free.
CMG Price Action: Chipotle Mexican Grill are up 2.56% at $60.96 and has a 52-week high of $69.26 and a 52-week low of $37.49.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41581488/is-s-p-500-headed-for-a-lost-decade-analysts-say-we-may-have-forgotten-about-divide">• Is S&amp;P 500 Headed For A Lost Decade? Analysts Say &#8216;We May Have Forgotten About Dividends&#8217;</a>
Photo: Shutterstock

Equities

Previews

Chipotle Q3 Earnings Preview: Will Growth Continue During Leadership Changes?

Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) has outperformed the market over the past 15 years by 14.95% on an annualized basis producing an average annual return of 27.11%. Currently, Chipotle Mexican Grill has a market capitalization of $81.50 billion. 
Buying $100 In CMG: If an investor had bought $100 of CMG stock 15 years ago, it would be worth $3,638.28 today based on a price of $59.51 for CMG at the time of writing.
<h3>Chipotle Mexican Grill's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1729794610_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In This Stock 15 Years Ago Would Be Worth $3,600 Today

An E. Coli outbreak at multiple McDonald's Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>) restaurants is likely to have a minimal impact on the company's stock, analysts say after <a href="https://www.benzinga.com/news/24/10/41468120/mcdonalds-stock-drops-after-cdc-identifies-e-coli-outbreak-linked-to-quarter-pounders">Tuesday's after-hours movement.</a>
So far, the outbreak led to 49 cases across 10 states with 10 hospitalizations and one death, according <a href="https://www.cdc.gov/media/releases/2024/m1022-ecoli-outbreak.html">to</a> the Centers for Disease Control.
Most of the people who grew ill are from Colorado (26) or Nebraska (9)
<h3 class="wp-block-heading">The McDonald's Analysts</h3>
<ul>
<li>TD Cowen analyst Andrew Charles maintained a Hold rating on McDonald's with a $300 price target.</li>
<li>Wedbush analyst Nick Setyan maintained an Outperform rating with a $295 price target.</li>
<li>Stifel analyst Chris O'Cull maintained a Hold rating with a $257 price target.</li>
<li>KeyBanc analyst Eric Gonzalez maintained an Overweight rating with a $330 price target.</li>
</ul>
Read Also:<a href="https://www.benzinga.com/news/earnings/24/07/40008869/mcdonalds-q2-earnings-consumer-spending-shifts-hit-revenue-and-operating-margins-franchise-revenue-"> McDonald&#8217;s Q2 Earnings: Consumer Spending Shifts Hit Revenue And Operating Margins, Franchise Revenue Remains Flat</a>
TD Cowen: The E. coli outbreak is largely contained in the West and Midwest states. 
"We will monitor the situation as it's only natural to expect a short-term impact to sales," Charles said in a new investor note.
The analyst uses past cases of E. coli outbreaks for restaurant companies Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) and Jack In The Box (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JACK#NASDAQ">JACK</a>) and estimates that every 1% change in U.S. same-store sales could be around a 9 cents earnings per share impact.
Charles lists a "worst-case sales impact" of 37 cents to fourth-quarter earnings per share.
Wedbush: Setyan expects a limited impact from the E. coli outbreak and thinks comparisons to Chipotle are misplaced.
"MCD well positioned to contain quickly, and any impact likely much more limited than CMG," Setyan said.
With the Quarter Pounder removed from impacted states, the full extent of cases could become clear in two weeks, the analyst added.
Compared to Chipotle's past outbreak, the analyst highlights McDonald's franchised, global base having a limited impact on its overall financials.
"MCD has the scale and expertise to respond and contain far more quickly than CMG at the time."
Stifel: With more cases likely to come in the next two weeks, O'Cull said it's hard to estimate the financial impact on McDonald's.
"Fortunately, McDonald's has regional suppliers, so it quickly pulled certain items at risk, likely limiting the impact," O'Cull said.
The analyst used an example of an outbreak of E. coli at Chipotle locations previously, which led to five quarters of negative same store sales growth. O'Cull said Wendy's managed an E. coli outbreak in 2022 "much better" and most investors don't remember the outbreak.
Wendy's saw a minimal impact on traffic. Like McDonald&#8217;s, it removed the sources and the menu items in stores, O'Cull added.
KeyBanc: The E. coli outbreak could "derail" momentum for McDonald's, Gonzalez said in a new investor note.
Like other analysts, Gonzalez recalls the outbreak Chipotle had in 2015. He cautions that the fast-casual chain had E. coli, salmonella and norovirus cases during that rough time for the company.
Gonzalez said Chipotle saw its name in the news for many months. The bad press took a huge toll on the brand as customers dined elsewhere over concerns of multiple items.
"This was catastrophic for a chain that was known for serving ‘food with integrity' and whose customer base was said to be ‘fanatical' in its love for the brand."
The analyst said it's easy to compare the current McDonald's outbreak to Chipotle and other past restaurant outbreaks. But, to assume that it will face a similar outcome &#8220;might be too extreme of a bear case."
About 30% of McDonald's stores are located in the U.S. That, along with its 95% franchise model, could insulate the company from a severe financial impact, Gonzalez adds.
MCD Price Action: McDonald's stock is down 5% to $298.97 on Wednesday, erasing some of the losses in the after-hours trading session on Tuesday. McDonald's stock is up 0.6% year-to-date in 2024 and has traded between $243.53 and $317.90 over the last 52 weeks.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/general/politics/24/10/41434014/donald-trump-would-have-to-work-at-pennsylvania-mcdonalds-for-14-5-years-to-equal-presidential-s">Donald Trump Would Have To Work At Pennsylvania McDonald&#8217;s For 14.5 Years To Equal Presidential Salary</a></li>
</ul>
Image by Kelvin Stuttard from Pixabay

Analyst Color

Reiteration

JACK

McDonald's 'Well Positioned To Contain' E. Coli Outbreak: Analysts Say Impact Minimal Vs. Chipotle's 2015 Case

Fast-food giant McDonald's Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>) is one of the most valuable restaurant companies in the world, valued at more than $225 billion and consistently putting out quarterly results with<a href="https://www.benzinga.com/news/earnings/24/07/40008869/mcdonalds-q2-earnings-consumer-spending-shifts-hit-revenue-and-operating-margins-franchise-revenue-"> billions of dollars in revenue.</a>
It turns out that the company could have been even more valuable if it had retained its ownership stake in Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>).
McDonald's Ownership of Chipotle: McDonald's invested in <a href="https://www.benzinga.com/topic/restaurant-stocks">several restaurant companies </a>during the late 1990s and early 2000s including taking an initial stake in Chipotle in 1998.
The fast-food giant was instrumental in Chipotle&#8217;s rapid expansion, helping to grow the chain from 14 to more than 500 locations in seven years.
McDonald's initially invested $50 million into the fast casual company and invested around $340 million total during its time holding a stake in the company, as reported by <a href="https://www.bloomberg.com/graphics/2015-chipotle-oral-history/">Bloomberg</a>. At one time, McDonald's owned around 90% of Chipotle.
Chipotle went public on Jan. 26, 2006, at $22 a share. Its stock opened for trading at $44 and gained huge interest and a soaring valuation. The company had an initial valuation of approximately $700 million at the time of its IPO, but by the end of 2006, it had grown to $1.85 billion.
McDonald's sold a portion of its ownership in Chipotle during the IPO and exited its position completely by October 2006.
While it is unknown how much McDonald's made on their multiple sales of Chipotle stock, it turns out they could have made a lot more by holding or selling at a later date.
Chipotle&#8217;s current market capitalization is $82 billion. McDonald's 90% stake in Chipotle would be worth $73.8 billion today, assuming it held the entire ownership amount.
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Why McDonald's Sold: Chipotle was one of several restaurant companies McDonald's invested in, a list that includes Donato's Pizza, Aroma Café, Boston Market, Pret A Manger and a joint venture with Fazoli's.
The investment in Chipotle was one of the keys for McDonald's and the larger restaurant company tried to influence business decisions of the smaller brand with ideas like launching a breakfast menu, franchising locations and adding drive-thru locations.
While Chipotle reluctantly added franchised locations, former CEO and co-founder Steve Ells fought back against drive-thru windows and breakfast.
McDonald's was asked about its decision to sell its Chipotle stake at a shareholder meeting. Then CEO Steve Easterbrook said Chipotle and other restaurant investments took attention away from the core McDonald's brand, labeling them a distraction, according to a <a href="https://www.entrepreneur.com/franchises/5-uncomfortable-questions-asked-at-mcdonalds-company/246527">report </a>from Entrepreneur.
Easterbrook said the sale of Chipotle and other restaurant stakes would ensure that everyone was putting 100% of their time and focus into the core McDonald's brand.
Ells has openly discussed the differences between where he wanted to take Chipotle and where McDonald's wanted to go, which may also have led to the sale.
"What we found at the end of the day was that culturally we're very different," Ellis told Bloomberg. "There are two big things that we do differently. One is the way we approach food, and the other is the way we approach our people culture. It's the combination of those things that I think make us successful."
McDonald's divested all its ownership stakes in restaurant companies but later ventured into the creation of Redbox, a movie kiosk business. The company eventually sold a stake in Redbox to Coinstar before fully exiting the business.
What's Next: McDonald's continues to be one of the largest restaurant companies in the world and competes for market share from consumers in the highly competitive fast-food space.
Chipotle and other fast-casual brands have taken market share from the fast-food sector over the years. Chipotle continues to grow and has over 3,000 locations in the United States, Canada, and several other countries.
After the sale of its stake by McDonald's, Chipotle bought back the franchised locations. The company now owns all of its U.S. locations in a decision to focus on consistent quality and service at all locations as part of its "Food with Integrity" promise.
Chipotle opened its first location in Dubai in October 2024. The restaurant is part of the company's first-ever international franchise partnership that will see more locations open in the Middle East in the future.
While Chipotle moved away from the franchise model that McDonald's advocated, the company did adopt one key idea from its former investor. Today, most Chipotle locations, including the majority of new builds, feature a drive-thru lane. This addition aligns with McDonald's influence and has become a significant feature in Chipotle's operations.
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Photo: Shutterstock

Education

McDonald's Once Owned 90% Of Chipotle: Why It Sold Stake Too Early, Missed $73 Billion Opportunity

On Wednesday, Starbucks (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sbux#NASDAQ">SBUX</a>) released preliminary fourth quarter results that fell short of estimates as weak U.S. demand resulted in declines in same store sales, net revenue and profit. Upon the release that showed same-store sales continued to decline for the third consecutive quarter,&nbsp;shares of the world&rsquo;s best-known coffee chain fell more than 3% in extended trading. The newly appointed CEO who was also&nbsp;the former CEO of Chipotle Mexican Grill, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cmg#NYSE">CMG</a>),&nbsp;Brian Niccol has embarked on a turnaround journey in an effort to return Starbucks to growth.&nbsp;
<h3>Fourth Quarter Highlights</h3>
For the quarter ended on September 29th, the coffee chain reported global comparable store sales fell by 7% which is&nbsp;steepest drop that the coffee chain posted since the Covid-19 pandemic that wreaked havoc on its business.
Specifically, its home U.S. market experienced a comparable sales drop of 6% while its second biggest market, China, plummeted with sales tanking 14%. The U.S. decline was largely owed to a 10% drop in comparable transactions, which was partially offset by a 4% rise in average ticket size. With U.S. traffic tumbling 10%, it&rsquo;s clear that increased investments in the business that involved increasing the frequency of promotions in its mobile app as well as an expanded range of product offerings, did not do the trick as rising costs of living squeezed consumer budgets, especially in China where sales were also weighed down by intensified competition.
Overall, consolidated net sales fell 3% to $9.1 billion, coming short of LSEG&rsquo;s consensus estimate of $9.38 billion, while on-GAAP earnings per share declined 24% on a constant currency basis, coming in at $0.80. LSEG expected earnings per share of $1.03.
A suspended outlook as the perennial coffee leader is in for a much-needed turnaround.
Starbucks&nbsp;suspended its guidance for the upcoming fiscal year as Niccol works to revamp the company amid melting demand for its higher-priced offerings.&nbsp;Niccol made it clear that the strategy needs to be fundamentally changed, which is how &ldquo;Back to Starbucks&rsquo; plan aims to get Starbucks back to growth. Niccol provided more details of the plan such as simplifying its &quot;overly complex menu&quot; and adjusting the &quot;pricing architecture.&quot; In an effort to reassure investors about its turnaround plan after a dismal quarter, Starbucks raised its quarterly dividend to 61 cents per share, up from 57 cents. Fourth quarter earnings call has been scheduled for October 30th.&nbsp;
Shortly after taking the helm in a surprising appointment, Niccol is already shaking things up.
Niccol is already changing its&nbsp;marketing strategy fundamentally by refocusing on all Starbucks customers, as opposed to prioritizing members of its loyalty program. Niccol believes problems are very fixable and that Starbucks has significant strengths to build upon. As Niccol embarks on the journey of fixing the sales slump, his first stop is the home market, trying to fix the struggling U.S. business. Niccol&rsquo;s approach involves aiming to improve&nbsp;the barista experience, morning service, the cafes and last, but certainly not least, Starbucks&rsquo; branding.&nbsp;&nbsp;The former Chipotle CEO is bringing a former Chipotle executive, Tressie Lieberman, on board to deal specifically with this task. The former Chipotle executive has gained a newly created position at Starbucks as Lieberman comes on board as global chief brand officer.
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

SBUX

Starbucks Fails At Reversing Declining Sales

Chipotle Mexican Grill, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) disclosed a partnership with Paradox to streamline the hiring <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/n41449566/chipotle-introduces-new-ai-hiring-platform-to-support-its-accelerated-growth" rel="noreferrer noopener">process for its restaurant teams</a>.
Paradox&#8217;s conversational AI-powered platform will reduce administrative tasks for General Managers, such as gathering candidate information and scheduling interviews, allowing them to focus more on daily operations and guest hospitality.
The new system is expected to cut hiring times for in-restaurant positions by up to 75%.
Chipotle will roll out Paradox in phases across over 3,500 Chipotle locations, with full implementation expected this month.
The new recruiting system aims to reduce hiring time, lower job advertising costs, fill hard-to-staff roles and enhance the overall candidate experience.
Chipotle&#8217;s hiring system, powered by Paradox, features a virtual assistant named &#8220;Ava Cado.&#8221;
Ava streamlines hiring by chatting with candidates, answering questions, collecting information, scheduling interviews, and sending offers and supports multiple languages, including English, Spanish, French, and German.
Ilene Eskenazi, Chief Human Resources Officer, said, &#8220;As we continue to move toward our long-term goal of operating 7,000 restaurants in&nbsp;North America, we are empowering our teams to recruit and hire talent that are excited by our vision to Cultivate a Better World and want to grow with us.&#8221;
&#8220;Paradox operates as if we&#8217;ve hired additional administrative support for all our restaurants, freeing up more time for managers to support team members and provide an exceptional guest experience.&#8221;
Investors can gain exposure to the stock via iShares Long-Term U.S. Equity Active ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BELT#NASDAQ">BELT</a>) and iShares U.S. Consumer Focused ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEDI#BATS">IEDI</a>).
Price Action: CMG shares are up 0.15% at $59.79 at the last check Tuesday.
Photo: rblfmr/Shutterstock.com
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