Chipotle Mexican Grill Inc. (CMG) Thursday reported an increase in profit for the first quarter, as new restaurant openings boosted revenues. Both earnings and revenues for the period trumped analysts' estimates.
Chipotle's revenues for the three-month period grew 13.4 percent to $726.8 million from $640.6 million last year. Analysts on a consensus estimated revenues of $724.77 million for the quarter.
Chipotle, a burrito and tacos chain spun off from McDonald's in 2006, said revenue growth was driven mainly by new restaurants and a 1.0 percent increase in comparable restaurant sales. During the quarter, the company opened 48 new restaurants, taking the total restaurant count to 1,458.
Denver, Colorado-based Chipotle's first-quarter profit rose to $76.6 million or $2.45 per share from $62.7 million or $1.97 per share last year. On average, 27 analysts polled by Thomson Reuters expected earnings of $2.14 per share for the quarter. Analysts' estimates typically exclude special items.
Restaurant level operating margin dropped 110 basis points to 26.3 percent from last year driven by higher food costs and to a lesser extent from higher occupancy costs.
For the full year 2013, the company continues to expect to open 165 to 180 new restaurants, and anticipates flat-to-low single digit comparable restaurant sales.
CMG closed Thursday at $328.36, down $11.58 or 3.41%, on the NYSE. The stock gained $11.64 or 3.54% in after hours.
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