Summary
Chipotle Mexican Grill, Inc. (CMG) filed an 8-K on June 19, 2017, to reaffirm and clarify financial and operating guidance for the second quarter and full year of 2017. The company is hosting an investor meeting and is using this filing to ensure consistent communication of its outlook. Key financial projections reiterated include expectations for Q2 2017 food costs to remain around 34.2% of sales, with marketing and promotion costs increasing by 20-30 basis points to 3.6%-3.7% of sales. For the full year 2017, Chipotle continues to project comparable restaurant sales growth in the high single digits, the opening of 195-210 new restaurants, and an effective tax rate of approximately 39.0%. The filing also includes forward-looking statements and a discussion of associated risks and uncertainties.
Key Highlights
- 1Reaffirmation of Q2 2017 financial guidance.
- 2Expected Q2 2017 food costs at approximately 34.2% of sales.
- 3Anticipated Q2 2017 marketing and promotion costs to be 3.6%-3.7% of sales, an increase of 20-30 basis points from Q1 2017.
- 4Reiteration of full-year 2017 comparable restaurant sales increase target in the high single digits.
- 5Confirmation of full-year 2017 new restaurant opening target of 195-210 units.
- 6Estimated full-year 2017 effective tax rate projected at approximately 39.0%.
- 7Inclusion of forward-looking statements and detailed risk factors impacting future performance.