logo
Plus   Neg
Share
Email
Comment

Chipotle Mexican Grill Shares Rise As Q2 Results Beat Estimates

Chipotle Mexican Grill Inc. (CMG) on Thursday reported an 8 percent increase in profit for the second quarter, as new restaurant openings and an increase in comparable restaurant sales boosted revenues. Both earnings and revenue for the period beat analysts' estimates.

Looking ahead, the company raised its outlook for fiscal 2013 comparable restaurant sales growth. Shares of the company gained almost 5 percent in extended trades.

Comparable restaurant sales for the second quarter rose 5.5 percent, driven by increased traffic and from the benefit of one additional trading day in the quarter. This compares to an 8.0 percent increase in comparable restaurant sales in the year-ago period.

Denver, Colorado-based Chipotle, a burrito and tacos chain spun off from McDonald's Corp. (MCD) in 2006, said its net profit for the second quarter was $87.85 million or $2.82 per share, up from $81.68 million or $2.56 per share in the year-ago period.

On average, 26 analysts polled by Thomson Reuters expected the company to report earnings of $2.81 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 18 percent to $816.79 million from $690.93 million in the same period last year. Analysts had a consensus revenue estimate of $802.78 million for the quarter.

During the quarter, the company opened 44 new restaurants, taking the total restaurant count to 1,502. However, restaurant level operating margin dropped 160 basis points from the same period last year to 27.6 percent, reflecting higher food costs and marketing costs.

Food costs were 33.1 percent of revenue, an increase of 100 basis points, driven by higher commodity costs. Higher commodity costs were driven by increased prices for all of the company's salsa ingredients, as well as for dairy items and chicken.

Looking ahead to fiscal 2013, Chipotle Mexican Grill now forecasts low-to-mid single digit comparable restaurant sales, compared to its prior outlook for flat-to-low single digit comparable restaurant sales.

The company reaffirmed its expectation to open 165 to 180 new restaurants during the year.

CMG closed Thursday's regular trading at $376.75, up $0.98 or 0.26 percent on a volume of 976,798 shares. In after-hours trading, the stock further gained $18.25 or 4.84 percent to $395.00.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
BlackRock Inc., the world's largest asset manager, said it plans to speak with gun makers and distributors following public outcry after the Florida high school shooting that killed 17 people. BlackRock, which had $6.3 trillion in assets under management as of December 31, 2017, holds shares in gun makers Sturm Ruger & Co. Inc. as well as American Outdoor Brands Corp. An upgraded boarding in Southwest Airline will cost you more. The airline usually not assign seats to passengers, but one can choose from an open seat. The Upgraded Boarding will allow passengers to choose from A1 - A15 boarding positions. The cost for these positions would be $30, $40 and $50, depending on flight and route. This option can be availed from the ticket counter or gate. Citigroup Inc.'s co-head of mergers and acquisitions, Peter Tague, is leaving the company, according to media reports, citing people familiar with the matter. Tague has been co-head of Global M&A business at Citigroup since March 2012, alongside Cary Kochman and Mark Shafir. It was not immediately clear what Tague intends to do after he leaves Citigroup.
comments powered by Disqus
Follow RTT