Another strong quarter from Chipotle (CMG), with sales up 18% and gross margin growing 140 basis points.

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Comparable store sales were up 11.1%, with transaction count increasing 9% and average check over 2%. The firm opened 52 new stores in the quarter, right about at our expected 200-250 annual pace. A 50-for-1 stock split was completed (our target price has been adjusted accordingly). Most importantly, Chicken Al Pastor returned! The company continues to track right to our modeling and the fair value gets just a modest bump up to $33 (from $32.50). I really want to own it, but the stock is still too expensive.

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