Summary
Chipotle Mexican Grill, Inc. (CMG) reported strong financial performance for the nine months ended September 30, 2010. Revenue grew by 19.7% to $1.35 billion, driven by both new restaurant openings and an 8.3% increase in comparable restaurant sales. Net income rose significantly by 39.1% to $132.5 million, leading to diluted earnings per share of $4.18, up from $2.96 in the prior year period. The company continued its aggressive expansion, opening 67 new restaurants year-to-date and planning for further growth, while also actively repurchasing shares under its authorized program. Key operational highlights include progress in their 'Food With Integrity' initiative, with increased percentages of naturally raised beef and organically grown beans. However, the company noted temporary challenges with naturally raised chicken supply, impacting food costs. Management expressed confidence in their liquidity and capital resources, expecting to fund growth and stock repurchases through operating cash flow and existing cash balances, with no significant off-balance sheet arrangements identified. Despite challenges such as potential increases in food costs and ongoing litigation, CMG demonstrated robust sales growth and profitability.
Financial Highlights
43 data points| Operating Expenses | $399.29M |
| Operating Income | $77.58M |
| Net Income | $48.23M |
| EPS (Basic) | $0.03 |
| EPS (Diluted) | $0.03 |
| Shares Outstanding (Basic) | 1.55B |
| Shares Outstanding (Diluted) | 1.58B |
Key Highlights
- 1Revenue increased by 19.7% to $1.35 billion for the first nine months of 2010 compared to the same period in 2009.
- 2Net income grew by 39.1% to $132.5 million, with diluted EPS rising to $4.18 from $2.96.
- 3Comparable restaurant sales increased by 8.3% for the nine months ended September 30, 2010, driven by customer visits.
- 4The company opened 67 new restaurants in the first nine months of 2010 and plans to open between 120-130 for the full year.
- 5Chipotle repurchased approximately $109.3 million of its common stock during the first nine months of 2010.
- 6Food, beverage, and packaging costs as a percentage of revenue decreased slightly due to favorable food costs, though higher naturally raised beef costs were noted.
- 7The company continues to advance its 'Food With Integrity' initiative, increasing naturally raised and organic ingredient percentages, despite some supply challenges for naturally raised chicken.