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Tuesday, February 6, 2018

=Chipotle Mexican Grill (CMG) reported earnings on Tue 6 Feb 2018 (a/h)

Chipotle Mexican Grill beats by $0.02, reports revs in-line, comps +0.9%
  • Reports Q4 (Dec) earnings of $1.34 per share, $0.02 better than the Capital IQ Consensus of $1.32; rev +7.3% to $1.11 bln vs. $1.11 bln consensus.
  • Comparable restaurant sales increased 0.9% for the quarter
  • Restaurant level operating margin was 14.9%, an increase from 13.5%
  • Food costs were 34.2% of revenue, a decrease of 110 basis points compared to the fourth quarter of 2016. The decrease was driven by the benefit of the menu price increases, cost savings initiatives related to paper and packaging products, and relief in avocado prices during the fourth quarter of 2017 compared to the fourth quarter of 2016.
2018 Outlook
  • Comparable restaurant sales increases in the low single digits
  • 130 - 150 new restaurant openings
Chipotle Mexican Grill On Call expects Q1 comps of 1-2% before impact of Chiptopia 
  • says Q4 comp was driven by a higher average check
    • says average check benefited by about 200 bps from queso w/ this 200 bps continuing in January as guests are currently adding queso in ~10% of transactions
  • will be increasing investments in restaurants
  • Announces bonuses for all employees
  • Says search for new CEO is 'well underway'; no update yet 
  • January 2018 comps was +3.47%, had one extrad trading day that contributed about 240 bps and will acc/t for just under 1% in the comp for Q1
  • Says weather normalized comps that had been running at 2.5-3.5% during the first 3 weeks of January
  • Expects comps of 1-2% before impact of Chiptopia
  • Expects FY comp guidance for 2018 ion the low single digits w lower sales comps expects in the 1H of yea due to tougher comparisons then improvement as comparisons ease
  • expects Q1 margin in the 16-16.5% range

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