Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, January 08, 2016

Article Excerpt

CHIPOTLE MEXICAN GRILL INC., $412.96, symbol CMG on New York, is a Denver-based Mexican restaurant chain. It charges slightly higher prices than fast food companies but offers better quality food, including naturally raised meat and superior decor and service. The stock continues to suffer as the company copes with food-safety concerns at its restaurants. In October and November 2015, E. coli infections sickened 52 people at Chipotle locations in nine states and forced the company to temporarily close some outlets. Recent norovirus outbreaks at restaurants in California and Massachusetts have added to the bad publicity. Norovirus, which causes stomach problems, is highly infectious, though not fatal. Chipotle now believes these problems cut its same-restaurant sales by 14.6% in the fourth quarter of 2015. It also expects costs of $14.0 million to $16.0 million to test and replace bad food and improve its food-safety procedures. To put that in context, Chipotle earned $144.9 million, or $4.59 a share, in the three months…