News

Is Chipotle bouncing back?

April 25, 2017

Chipotle reported today that business in 2017 is off to a strong start. Revenue increased 28 percent to $1.07 billion in Q1 2017 compared with the same period in 2016, and comparable restaurant sales increased 17.8 percent year over year, founder and Chairman Steve Ells said Tuesday during an earnings call.

Other Q1 highlights included:

a restaurant-level operating margin increased to 17.7 percent from 6.8 percent in Q1 2016;
net income of $46.1 million, improved from a net loss of $26.4 million;
diluted earnings per share of $1.60, improved from a diluted net loss per share of $0.88; and
57 new locations opened.

"[O]ur restaurant managers and teams are energized by our renewed focus on the customer," Ells said. "By simplifying the focus in our restaurants to only those elements that lead to a great guest experience, our operations have improved every single month, which gives us confidence that we are on our way to achieve our mission to ensure that great food made with whole, unprocessed ingredients is accessible to everyone."

This is the best news the chain has reported since it began losing market share nearly two years ago after multiple food-safety issues surfaced.

Outlook

For the full year 2017, management is targeting the following: