News

Chipotle Mexican Grill 3Q revenue up 24%

October 20, 2011

Chipotle Mexican Grill Inc. has reported financial results for its third quarter, ended Sept. 30, 2011. Highlights for the third quarter of 2011 as compared to the third quarter of 2010 include:

• Revenue increased 24.1 percent to $591.9 million
• Comparable restaurant sales increased 11.3 percent 
• Restaurant level operating margin was 26.7 percent, a decrease of 100 basis points
• Food costs were 33.1 percent of sales, an increase of 250 basis points driven by rising commodity costs
• Net income was $60.4 million, an increase of 25.3 percent 
• Diluted earnings per share was $1.90, an increase of 25.0 percent 

Highlights for the nine months ended Sept. 30, 2011 as compared to the prior year include:

• Revenue increased 23.6 percent to $1.67 billion                     
• Comparable restaurant sales increased 11.2 percent 
• Restaurant level operating margin was 25.9 percent, a decrease of 100 basis points
• Food costs were 32.7 percent of sales, an increase of 230 basis points driven by rising commodity costs
• Net income was $157.5 million, an increase of 18.8 percent 
• Diluted earnings per share was $4.96, an increase of 18.7 percent 

"Chipotle's strong performance in the quarter and throughout the year is the result of our strong food culture, where we are constantly striving for more sustainable sources for all of our ingredients; and our special people culture, where top performers throughout the company are creating an extraordinary dining experience for each customer,” said Steve Ells, founder, chairman and co-CEO of Chipotle.

Third quarter 2011 results

The growth in revenue was the result of new restaurants not in the comparable base and an 11.3 percent increase in same-store sales. The growth of comp sales was primarily driven by increased traffic in the quarter as well as the impact of menu price increases implemented between March and August.

During the quarter, the company opened 32 new restaurants, including its new ShopHouse Southeast Asian Kitchen, bringing the total restaurant count to 1,163.

Net income for the third quarter of 2011 was $60.4 million, or $1.90 per diluted share, compared to $48.2 million, or $1.52 per diluted share, in the third quarter of 2010.

Results for the nine months ended Sept. 30, 2011

Growth in revenue from the first nine months of its fiscal year was the result of new restaurants not in the comparable base and an 11.2 percent increase in comparable restaurant sales. Comparable restaurant sales growth was primarily driven by increased traffic.

During the first nine months of the year, the company opened 82 new Chipotle restaurants as well as ShopHouse, bringing the total restaurant count to 1,163.

Net income for the first nine months of 2011 was $157.5 million, or $4.96 per diluted share, compared to $132.5 million, or $4.18 per diluted share, in the first nine months of 2010.

For 2011, management expects the following:

• Openings at or above the high end of the 135-145 opening range
• Low double-digit comparable restaurant sales growth for the full year
• An effective tax rate of approximately 38.4 percent 

For 2012, management expects the following:

• 155-165 new restaurant openings
• Low single-digit comparable restaurant sales growth
• An effective tax rate of approximately 39.2 percent

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