Summary
Chipotle Mexican Grill, Inc. (CMG) reported strong top-line growth in the third quarter and the first nine months of 2015, driven by new restaurant openings and an increase in comparable restaurant sales. Revenue for the three months ended September 30, 2015, rose 12.2% to $1.217 billion, while the nine-month period saw a 15.3% increase to $3.504 billion. This growth was supported by a 5.5% increase in comparable restaurant sales for the nine months, primarily attributed to higher average checks, including the impact of menu price increases, and a lesser extent, increased customer visits. The company also saw an improvement in its food, beverage, and packaging costs as a percentage of revenue, benefiting from lower avocado and dairy prices, and menu price adjustments. However, labor costs as a percentage of revenue increased due to wage inflation and scheduling inefficiencies. Despite these pressures, net income grew to $144.9 million for the quarter, up from $130.8 million in the prior year. The company continued its share repurchase program, demonstrating confidence in its financial position and commitment to returning value to shareholders.
Financial Highlights
42 data points| Operating Expenses | $982.13M |
| Operating Income | $234.76M |
| Net Income | $144.88M |
| EPS (Basic) | $0.09 |
| EPS (Diluted) | $0.09 |
| Shares Outstanding (Basic) | 1.56B |
| Shares Outstanding (Diluted) | 1.58B |
Key Highlights
- 1Revenue increased by 12.2% to $1.217 billion for the third quarter of 2015 and by 15.3% to $3.504 billion for the nine months ended September 30, 2015.
- 2Comparable restaurant sales increased by 5.5% for the first nine months of 2015, driven by higher average checks and increased customer visits.
- 3Food, beverage, and packaging costs decreased as a percentage of revenue to 33.0% in Q3 2015 from 34.3% in Q3 2014, benefiting from lower commodity prices and menu price increases.
- 4Net income grew to $144.9 million ($4.59 diluted EPS) for the third quarter of 2015, up from $130.8 million ($4.15 diluted EPS) in the prior year.
- 5The company opened 150 new restaurants during the first nine months of 2015 and anticipates opening 215-225 for the full year 2015.
- 6Chipotle repurchased $147.1 million of its common stock during the first nine months of 2015, with $155.1 million remaining authorization as of September 30, 2015.
- 7The company is actively working to resolve supply chain challenges, particularly with pork for carnitas, and expects to have sufficient supply for all restaurants by the end of 2015.