Chipotle profit jumps, immigration probe expanded

[Leroy N. Soetoro]

http://www.reuters.com/article/2013/04/18/us-chipotle-results-
idUSBRE93H15G20130418

(Reuters) - Chipotle Mexican Grill Inc (CMG.N) posted a big jump in
quarterly profit on Thursday and said federal investigators have expanded
their probe into the popular burrito chain's compliance with immigration
laws.

Chipotle shares were up 3.5 percent in extending trading after cost
cutting helped insulate earnings from cooling sales growth and higher food
prices.

The news from Chipotle landed as restaurant chains fight for frugal diners
and as lawmakers embark on renewed efforts to reform immigration.

First-quarter profit at Chipotle rose to $76.6 million, or $2.45 per
share, from $62.7 million, or $1.97 cents per share, a year earlier.

Revenue was up 13.4 percent to $726.8 million.

Sales at restaurants open at least 13 months, a closely watched gauge of
industry performance, rose 1 percent - just matching analysts' average
estimate compiled by Consensus Metrix.

Food costs were 33 percent of revenue, an increase of 80 basis points from
a year ago, largely due to salsa ingredients and other produce, dairy and
chicken. Chipotle uses organic ingredients and antibiotic-free meat when
possible. As a result, it is less able than many rivals to lock in
ingredient prices.

Denver-based Chipotle - the subject of a three-year federal probe into its
hiring practices - said on Thursday the civil division of the U.S.
Attorney's Office for the District of Columbia requested work
authorization documents for all of its workers since 2007, plus employee
lists and other related documents.

Earlier this week, a bipartisan group of U.S. senators unveiled an
immigration reform bill that, among other things, would open the door for
millions of undocumented workers to one day become U.S. citizens.

The shares of the nearly 1,500-restaurant chain peaked at just above $440
about a year ago. In after-hours trading on Thursday, shares of Chipotle,
which has ramped up advertising and introduced catering to drive
additional sales, gained $11.64 to $340.

But the red-hot growth that propelled the stock to those levels has cooled
under pressure from food costs and rivals that have mimicked Chipotle's
menus.

Those trends have brought out the bears.

Jeffrey Gundlach, chief investment officer and chief executive of the $56
billion DoubleLine Capital LP, said last week his latest idea was a
"short" bet against Chipotle shares.

A year ago he told investors he was shorting the stock of Apple Inc
(AAPL.O) at $610 and correctly forecast Apple's stock price would fall to
$425.

Late last year, hedge-fund manager David Einhorn called Chipotle his
latest short idea. He said the shares were overvalued and the company's
business was vulnerable to competition, including from Taco Bell's new
Cantina menu that resembles Chipotle's but costs less.


--
Barack Obama, reelected by the dumbest voters in the history of the United
States of America.

Eric Holder, racist black murdering United States Attorney General, still
has his job.

Nancy Pelosi, Democrat criminal, accessory before and after the fact to
improper vetting of Barry Soetoro aka Barack Hussein Obama, a confirmed
felon using SSAN 042-68-4425, belonging to a dead man.

Obama ignored the brutal killing of an American diplomat in Benghazi, then
relieved American military officers who attempted to prevent said murder
in order to cover up his own ineptness.

Obama continues his goal of disarming America while ObamaCare increases
insurance premiums 200% and leaves millions without health care.

Obama helped bankrupt Illinois. Democrat run Chicago closes 54 public
schools.

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