News
Chipotle third quarter revenue up nearly 14%
October 22, 2009
Chipotle Mexican Grill's revenue increase of 13.8 percent was attributable to the opening of restaurants not in the comparable base and a 2.7 percent increase in same-store sales during the company's third quarter ended Sept. 30.
Revenue for the quarter jumped to $387.6 million, up from $340.5 million reported in the third quarter of 2008.
Same-store sales growth was due to the impact of menu price increases partially offset by a decline in customer visits. Chipotle opened 26 new restaurants during the third quarter of 2009 and operated 911 restaurants as of the end of the quarter.
Net income for the third quarter was $34.5 million, or $1.08 per diluted share, compared to $19.5 million, or $0.59 per diluted share in the third quarter of 2008.
Restaurant level operating margins increased to 25.5 percent in the third quarter of 2009, up from 21.4 percent in the third quarter of 2008, primarily due to menu price increases and labor efficiencies, partially offset by the impact of lower transaction volumes and increased occupancy costs.
"Our performance continues to be driven by our efficient business model, and our emphasis on doing just a few things, but always working hard to do them better," Steve Ells, founder, chairman, and Co-CEO, said in an earnings release. "This approach to running our business enables us to continue to deliver impressive financial performance to our shareholders even in this challenging environment."
Year to date
Revenue for the nine months ended Sept. 30, 2009, increased 14.6 percent to $1,130.9 million, up from $986.6 million reported in the prior year. Revenue growth was attributable to new restaurants not in the comparable base and a 2.2 percent comps increase.
Same-store sales growth was due to the impact of menu price increases partially offset by a decline in customer visits. Chipotle opened 76 new restaurants during the nine-month period.
Net income for the nine months was $95.2 million, or $2.96 per diluted share, compared to $61.2 million, or $1.84 per diluted share in the prior year period.
Restaurant level operating margins increased to 25.1 percent in the period, versus 21.7 percent in the nine months ended Sept. 30, 2008, primarily due to menu price increases, labor efficiencies and a decrease in marketing and promotional spend, partially offset by the impact of lower transaction volumes and increased occupancy costs.
For the full 2009 year management expects full-year comp increases in the low single digits and120-130 new restaurant openings.
In 2010, the company plans to open120-130 new restaurants and flat same-store sales.
Chipotle will host a conference call to discuss third quarter 2009 financial results today at 4:30 p.m. Eastern time. Hosting the call will be Steve Ells, Monty Moran, Co-CEO, and Jack Hartung, chief financial officer.
The conference call can be accessed live over the phone by dialing 1-888-211-9963 or 1-913-312-0382 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 4347835.
The replay will be available until Oct. 29, 2009. The call will be webcast live from the company's Web site under the Investor Relations section.
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