News
Chipotle reports 14% revenue increase
July 22, 2009
While same-store sales for Chipotle Mexican Grill Inc.'s second quarter grew a slight 1.7 percent, the company has reported a 14 percent increase in revenue.
Chipotle's revenue grew from $340.8 million reported during the second quarter of 2008 to $388.8 million in Q2 '09.
The company has attributed its revenue growth to the rise in same-store sales, created by a menu price increase offset by a drop in customer visits. Chipotle also opened 24 new restaurants during the second quarter of 2009.
General and administrative expenses were $25.8 million in the second quarter of 2009, or 6.6 percent of revenue, compared to $20.7 million in the second quarter of 2008, or 6.1 percent of revenue. The increase resulted from higher performance-based bonus accruals in 2009 and a reversal during the second quarter of 2008 of bonus accruals from the first quarter, partially offset by menu price increases.
Net income for the second quarter of 2009 was $35.4 million, or $1.10 per diluted share, compared to $24.5 million, or 74 cents per diluted share in the second quarter of 2008.
Year to date
The company reported revenue for the six months ended June 30 increased 15 percent to $743.3 million, up from $646.1 million reported during the same period last year. The growth in revenue was attributable to new restaurants not in the comparable base and a 1.9 percent increase in same-store sales.
Chipotle opened 50 new restaurants during the six-month period and as of June 30 operated 886 restaurants.
Year-to-date, general and administrative expenses were $49.5 million, or 6.7 percent of revenue, compared to $42.2 million, or 6.5 percent of revenue, reported during the prior year period. General and administrative expenses increased as a percentage of revenue primarily due to the higher performance-based bonus accruals for 2009 partially offset by the impact of menu price increases.
Net income for the period was $60.8 million, or $1.88 per diluted share, compared to $41.8 million, or $1.25 per diluted share reported during the prior year period.
"At a time when we need to work harder than ever to earn each customer's visit, our managers and crews are rising to the occasion," said Monty Moran, Co-CEO of Chipotle. "Our teams are better than ever, and this is leading to better food, better service, and better restaurant level margins."
2009 Outlook
For 2009, Chipotle management expects the following:
- Full year comparable restaurant sales increases in the low single digits
- 120-130 new restaurant openings
- An effective tax rate of approximately 38.4 percent
- Diluted weighted average common shares outstanding of approximately 32.2 million
Conference Call
Chipotle will host a conference call to discuss its second quarter 2009 financial results today at 5 p.m. Eastern time. Hosting the call will be Steve Ells, founder, chairman and co-chief executive officer, Monty Moran, co-CEO, and Jack Hartung, chief financial officer.
The conference call can be accessed live over the phone by dialing 1-888-220-8639 or 1-913-905-3164 for international callers. A replay will be available one hour after the call and can be accessed by dialing 1-888-203-1112 or 1-719-457-0820 for international callers. The password is 8814456. A replay also will be available until July 29, 2009.
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