This Is the Moment Chipotle Mexican Grill Investors Have Waited For

Will a more expensive burrito burn investors? Here's why one Fool doesn't think so.

Apr 22, 2014 at 2:00PM

Will expensive burritos burn Chipotle Mexican Grill's (NYSE:CMG) revenue growth?

That's the question on investors' minds since shares of Chipotle Mexican Grill ended last week by falling 6% on disappointing quarterly results. While Chipotle achieved impressive 24.4% top-line growth on a 13.4% increase in comparable restaurant sales, the burrito maker's earnings lagged behind as rising food costs ate into its bottom line.

To make matters worse, when Chipotle announced its first price increase in three years, investors reacted with skepticism as they wondered whether diners would spurn the move.

But according to the Fool's Steve Symington in the following video, there are several reasons raising prices shouldn't be a problem for Chipotle. After all, Chipotle made clear its methodical approach to price incresases long ago, and Steve thinks the fast-casual chain has already built priceless customer loyalty by refraining to do so up until this point. To hear Steve's full take on what this means for Chipotle investors, please watch the video.

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Of course, this doesn't mean Chipotle's the only great company poised for growth in the years ahead. But where else should you look?

Consider the investing expertise of Motley Fool co-founder David Gardner, who has proved skeptics wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Steve Symington has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Chipotle Mexican Grill. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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