Chipotle Mexican Grill (CMG) reported stronger-than-expected first-quarter earnings. CMG stock rose modestly overnight, signaling an early entry and near an official buy point.

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Chipotle earnings jumped 27% to $13.37 a share. That easily topped FactSet consensus of $11.81 a share. That’s the second straight quarter of accelerating growth. Sales grew nearly 14% to $2.684 billion, slightly beating views.

Same-restaurant sales rose 7%. Operating margin picked up to 16.3% from 15.5%, with restaurant operating margins at 27.5%, up 190 basis points.

Chipotle sees same-restaurant sales growth in the mid- to high-single digits.

Chipotle stock rose just over 3% to 3,016 in late trading. Shares nudged 0.3% higher on Wednesday to 2,923.32, their third straight slim gain. CMG stock has a 3,023.98 buy point from a three-weeks-tight that could turn into a flat base after this week.

Investors could use a move above 3,000 as an early entry.

Chipotle’s board has OK’d a 50-for-1 stock split, subject to shareholder approval at the annual meeting on June 16.

Please follow Ed Carson on  Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

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