Summary
Chipotle Mexican Grill Inc. (CMG) reported strong financial performance for the nine months ended September 30, 2011, driven by a combination of new restaurant openings and comparable restaurant sales growth. Revenue increased by 23.6% year-over-year, reaching $1.67 billion, while net income grew by 18.8% to $157.5 million. The company expanded its restaurant footprint significantly, opening 83 new locations during the period, bringing the total to 1,163. Comparable restaurant sales increased by 11.2%, fueled by higher customer visits and strategic menu price adjustments. Despite increased food costs, which rose to 32.7% of revenue due to inflation in key ingredients like avocados, beef, and chicken, Chipotle managed to improve its operating margins. Labor costs as a percentage of revenue decreased due to higher average restaurant sales. The company also continued its share repurchase program, buying back $41.8 million in stock. Looking ahead, CMG anticipates continued comparable restaurant sales growth in the low double digits for the full year 2011, though moderating to low single digits in 2012 due to economic uncertainties. The company remains focused on its "Food With Integrity" vision and expanding its store base, with plans to open 135-145 restaurants in 2011 and 155-165 in 2012.
Financial Highlights
43 data points| Operating Expenses | $493.84M |
| Operating Income | $98.01M |
| Net Income | $60.43M |
| EPS (Basic) | $0.04 |
| EPS (Diluted) | $0.04 |
| Shares Outstanding (Basic) | 1.57B |
| Shares Outstanding (Diluted) | 1.59B |
Key Highlights
- 1Revenue for the nine months ended September 30, 2011, increased by 23.6% to $1.67 billion, compared to $1.35 billion in the prior year.
- 2Net income for the nine-month period grew by 18.8% to $157.5 million, or $4.96 per diluted share.
- 3The company opened 83 new restaurants in the first nine months of 2011, expanding its total unit count to 1,163.
- 4Comparable restaurant sales increased by 11.2% for the nine months ended September 30, 2011, driven by customer traffic and menu price increases.
- 5Food, beverage, and packaging costs as a percentage of revenue increased to 32.7% from 30.4% in the prior year, primarily due to inflation in ingredient costs.
- 6Chipotle continued its share repurchase program, acquiring $41.8 million worth of stock during the first nine months of 2011.
- 7The company's cash and cash equivalents balance grew significantly to $409.9 million as of September 30, 2011, up from $224.8 million at the end of 2010.