News

Chipotle: Revenue up, food costs down for Q2

Chipotle Mexican Grill reported during its Tuesday’s Q2 earnings call that its revenue increased 14.1 percent to $1.2 billion and that comparable restaurant sales increased 4.3 percent.

July 22, 2015

Chipotle Mexican Grill reported during its Q2 earnings call this week that revenue increased 14.1 percent to $1.2 billion and that comparable restaurant sales increased 4.3 percent.

"We feel good about our second quarter results, as our revenue, average restaurant sales, and comparable restaurant sales have continued to grow even comparing to a very strong 2014," Steve Ells, founder, chairman and co-CEO of Chipotle, said in a company statement.

Ells said food costs were down, making up 33.1 percent of revenue, a decrease of 150 basis points. He called the lower costs a result of the "impact of our menu price increase, as well as relief in dairy and avocado prices, partially offset by increased beef and packaging costs as compared to the second quarter of 2014."

Other highlights included:

• That net income was $140.2 million, an increase of 27.1 percent.
• That diluted earnings per share was $4.45, an increase of 27.1 percent
• And that the chain opened 48 new restaurants.

Highlights for the six months ended June 30, as compared to the prior year include:

• Revenue increased 17.0 percent to $2.3 billion.
• Comparable restaurant sales increased 7.1 percent.
• Restaurant-level operating margin was 27.7 percent, an increase of 100 basis points.
• Net income was $262.8 million, an increase of 36.0 percent.
• Diluted earnings per share was $8.34, an increase of 35.8 percent
• And opened 97 new restaurants

"We consistently deliver this strong performance because of our amazing people culture, consisting of teams of top-performing employees who are empowered to achieve high standard," said Monty Moran, co-CEO of Chipotle."We are completely focused on strengthening this culture, by teaching people how to empower those around them to be at their best and developing leadership internally, and by making further investments in our teams, most recently by adding benefits for our hourly employees, including increased paid vacation and sick days and tuition reimbursement."

For 2015, management expects the following:

• New restaurant openings at or above the high end of the previously announced range of 190 to 205.
• Low-to-mid single digit comparable restaurant sales increases
• And an effective full year tax rate of approximately 38.7 percent.