CHIPOTLE MEXICAN GRILL INC Quarterly Report for Q1 Ended Mar 31, 2021

Summary

Chipotle Mexican Grill Inc. (CMG) reported a strong first quarter for 2021, with total revenue increasing by 23.4% year-over-year to $1.74 billion. This growth was driven by a 17.2% increase in comparable restaurant sales and a significant 133.9% surge in digital sales, which now constitute 50.1% of total revenue. The company effectively leveraged these sales increases to improve restaurant operating costs as a percentage of revenue, which decreased by 470 basis points to 77.7%. Net income grew substantially to $127.1 million from $76.4 million in the prior year's quarter, translating to diluted earnings per share of $4.45. Despite a notable increase in general and administrative expenses, largely due to a significant rise in stock-based compensation related to a PSU modification, the company demonstrated robust operational performance. Chipotle continued its expansion, opening 40 new restaurants, with 26 featuring Chipotlanes, reinforcing its confidence in long-term growth potential. The company ended the quarter with a strong liquidity position, including $1.2 billion in cash and marketable investments.

Key Highlights

• 1Total revenue increased by 23.4% to $1.74 billion in Q1 2021 compared to Q1 2020.
• 2Comparable restaurant sales grew by 17.2%, indicating strong in-store and digital demand.
• 3Digital sales surged by 133.9% and represented 50.1% of total revenue, highlighting the success of digital initiatives.
• 4Restaurant operating costs as a percentage of revenue improved significantly, decreasing by 470 basis points to 77.7%.
• 5Net income rose to $127.1 million, with diluted EPS of $4.45, demonstrating improved profitability.
• 640 new restaurants were opened, including 26 with Chipotlanes, reflecting continued expansion and confidence in new unit growth.
• 7The company maintained a strong liquidity position with $1.2 billion in cash and marketable investments at quarter-end.

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