Summary
Chipotle Mexican Grill, Inc. (CMG) reported strong financial performance for the second quarter and first half of 2015, demonstrating robust revenue growth driven by new restaurant openings and increasing comparable restaurant sales. The company's "Food With Integrity" ethos continues to be a key differentiator, though it faced challenges with pork supply impacting carnitas availability. Despite these supply chain issues, Chipotle managed to grow its revenue by 14.1% in the quarter and 17.0% year-to-date, with diluted EPS rising to $4.45 and $8.34 respectively. Financially, the company maintained healthy margins, with food costs as a percentage of revenue decreasing due to favorable pricing on some ingredients and a menu price increase from the prior year, though labor costs saw a slight increase as a percentage of revenue due to scheduling inefficiencies and wage inflation. Chipotle also announced a significant increase in its share repurchase program, underscoring management's confidence in the company's financial health and future prospects. The company continues to expand its store base and maintain a strong balance sheet, providing ample liquidity for growth and shareholder returns.
Financial Highlights
42 data points| Operating Expenses | $970.37M |
| Operating Income | $227.42M |
| Net Income | $140.20M |
| EPS (Basic) | $0.09 |
| EPS (Diluted) | $0.09 |
| Shares Outstanding (Basic) | 1.56B |
| Shares Outstanding (Diluted) | 1.58B |
Key Highlights
- 1Revenue increased by 14.1% to $1.2 billion for Q2 2015 and by 17.0% to $2.3 billion for the first six months of 2015.
- 2Comparable restaurant sales increased by 4.3% in Q2 2015 and 7.1% for the first six months of 2015, driven by higher average checks.
- 3Diluted earnings per share (EPS) reached $4.45 for Q2 2015 and $8.34 for the first six months of 2015, up from $3.50 and $6.14 respectively in the prior year.
- 4The company opened 97 new restaurants in the first six months of 2015, and expects to open at or above the high end of its 190-205 range for the full year.
- 5Food, beverage, and packaging costs as a percentage of revenue decreased to 33.1% in Q2 2015 and 33.5% year-to-date, aided by menu price increases and favorable commodity prices.
- 6General and administrative expenses decreased by 6.2% in Q2 2015 due to lower stock-based compensation and bonus expenses.
- 7Chipotle announced an additional $100 million share repurchase authorization, following $116.3 million in repurchases during the first six months of 2015.