This article was originally published by TheStreet on May 31, 2014.
By Sarfaraz A. Khan. Research Asst. Gohar Yousuf.
NEW YORK (TheStreet) -- Ready to pay more for Mexican? That's what Chipotle Mexican Grill (CMG_) has on its menu as a way to fatten its margins and whet investor appetites.
The company has outperformed its restaurant competitors but has struggled with profitability because of increasing food costs. So unless consumers kick about it the hike in its prices can help the company continue growing revenue at double-digit rates.
Chipotle's shares are up 2.7% year to date based on the closing price of $547.09 on Friday. It has been just a couple of weeks since the company started introducing the higher prices, but so far the results are encouraging. There has been no indication of a consumer backlash.
