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Tuesday, April 26, 2016

-=Chipotle Mexican Grill (CMG) reported Q1 earnings on Tue 26 Apr 2016 (a/h)






Chipotle Mexican Grill beats by $0.17, misses on revs :
  • Reports Q1 (Mar) loss of $0.88 per share, $0.17 better than the Capital IQ Consensus of ($1.05); revenues fell 23.4% year/year to $834.5 mln vs the $863.24 mln Capital IQ Consensus.
  • Warned on March 15: Lowered EPS to ($1.00) or worse from break even; updated comps through 2nd week of March.
    • The decrease in revenue was driven by a 29.7% decrease in comparable restaurant sales (estimates near down 28.5%), partially offset by sales from new restaurant openings. Comparable restaurant sales declined primarily as a result of a decrease in the number of transactions in our restaurants, and to a lesser extent by a decline in average check, including an impact from sales promotions.
  • Comparable restaurant sales decreased 29.7%, Comparable restaurant transactions decreased 21.1%.
  • Restaurant level operating margin was 6.8%, a decrease from 27.5%. The decrease was primarily driven by unfavorable sales leverage, and to a lesser extent by higher than usual marketing and promotional costs, and food testing and waste costs.
  • For 2016, management expects the following:
    • 220 - 235 new restaurant openings
    • An effective full year tax rate of approximately 38.4% 

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