Chipotle Mexican Grill Earnings Cheat Sheet: Sales Surge Higher 24%

Chipotle Mexican Grill, Inc. (NYSE:CMG) reported higher profit for the first quarter as revenue showed growth. Chipotle Mexican Grill, Inc. develops and operates fast-casual, fresh Mexican food restaurants in 35 states throughout the United States, the District of Columbia and Ontario, Canada.

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Chipotle Mexican Grill Earnings Cheat Sheet for the First Quarter

Results: Net income for Chipotle Mexican Grill, Inc. rose to $46.4 million ($1.46/share) vs. $37.8 million $1.19/share) YoY. A rise of 22.6% from the year earlier quarter.

Revenue: Rose 24.3% to $509.4 million YoY.

Actual vs. Wall St. Expectations: CMG (NYSE:CMG) beat the mean analyst estimate of $1.44/share. Estimates ranged from $1.27 per share to $1.62 per share.

Quoting Management: “We are pleased to have begun 2011 with a strong quarter, and that we continue to drive great results while remaining true to our vision to change the way people think about and eat fast food. By focusing on finding the best ingredients we can get, preparing food using classic cooking techniques, and developing a people culture that is as unique as our food culture, we are building a very different kind of restaurant company and producing great results for our shareholders,” said Steve Ells, founder, chairman and co-CEO of Chipotle.

Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 21.5%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 24.5% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 41.9 percentage points to 68% from the year earlier quarter. Over that span, margins have grown on average 12.1 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 47% and in the third quarter of the last fiscal year, the figure rose 39.9%.

Competitors to Watch: McDonald’s Corporation (NYSE:MCD), Wendy’s Arby’s Group Inc. (NYSE:WEN), Starbucks Corporation (NASDAQ:SBUX), Sonic Corporation (NASDAQ:SONC), Darden Restaurants (NYSE:DRI) and Jack in the Box Inc. (NASDAQ:JACK).

Today’s Performance: Shares of CMG (NYSE:CMG) are trading at $278.88 as of April 20, 2011 at 7:59 PM ET, down 3.2% from the previous closing price of $279.85.


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