Improved Same-store Sales And Share Buyback Program Rescue Chipotle Shares
Shares of Chipotle Mexican Grill Inc swung back into positive territory after losing nearly 4% in premarket trading hours. The sharp decline came after the burrito chain had stated that comparable sales would fall during the fourth quarter.
However, the result came in higher than previously anticipated. The company witnessed progressive improvement after each month of the last quarter. Indeed, Chipotle’s same-store sales slid just 1.4 percent in November, and increased 14.7 percent in December after having plunged as much as 20 percent in October.
The restaurant chain also authorized a new $100 million share repurchase program, which helped push the company’s shares around 4% higher in U.S. session on Tuesday.
Buy Stop at 410.60, Take profit at 414.00, Stop loss at 408.00