News

Chipotle: 'Special food culture' responsible for Q1 growth

April 17, 2014

Chipotle Mexican Grill today reported that its revenue increased by nearly 25 percent to $904.2 million during the first quarter, which ended March 31.

Other Q1 highlights for 2014 as compared to the first quarter of 2013 include:

• Comparable restaurant sales increased 13.4 percent.
• Restaurant level operating margin was 25.9 percent, a decrease of 40 basis points.
• Net income was $83.1 million, an increase of 8.5 percent.
• Diluted earnings per share was $2.64, an increase of 7.8 percent.
• And the chain opened 44 new restaurants.

"We are delighted that more and more people are choosing to visit our restaurants every day allowing us to deliver double digit comps during the quarter," Steve Ells, founder, chairman and co-CEO of Chipotle, said in a company press release. "Our food culture has always been a defining characteristic of Chipotle and continues to set us apart from other restaurants. We are confident that our special food culture will continue to attract more customers to visit Chipotle as customers better understand how natural and high quality ingredients that are freshly prepared result in better tasting food."

Stock

The chain's Board of Directors has approved the investment of up to an additional $100 million, exclusive of commissions, to repurchase shares of company common stock. This repurchase authorization, in addition to up to $77 million available as of March 31 for repurchases under previously announced repurchase authorizations, may be modified, suspended, or discontinued at any time, according to the release.

2014 outlook

For 2014, management expects the following:

• 180 to 195 new restaurant openings.
• High single digit comparable restaurant sales increases, excluding any menu price increase.
• And an effective full year tax rate of approximately 39.1 percent

"Our unique and compelling people culture is having a tremendous and growing impact on our business and is one of the key drivers behind our success," said Monty Moran, co-CEO. "Our restaurateurs, and the cultures they are creating in their restaurants, are allowing us to serve better tasting food and provide a better dining experience to our guests."