Chipotle Mexican Grill Earnings: Profit Rises by Double-Figures for Fifth Consecutive Quarter

Chipotle Mexican Grill Inc. (NYSE:CMG) reported its results for the third quarter. Chipotle Mexican Grill 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 Inc. Earnings Cheat Sheet

Results: Net income for Chipotle Mexican Grill Inc. rose to $72.3 million ($2.27 per share) vs. $60.4 million ($1.90 per share) in the same quarter a year earlier. This marks a rise of 19.6% from the year-earlier quarter.

Revenue: Rose 18.4% to $700.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Chipotle Mexican Grill Inc. fell short of the mean analyst estimate of $2.33 per share. Analysts were expecting revenue of $707.1 million.

Quoting Management: “We have always believed that good food should be affordable and accessible to everyone. We’re delighted that our continuing efforts to serve the very best food made from high quality ingredients raised with respect for the animals, the environment, and farmers and that is freshly prepared using classical cooking techniques is resonating with our customers. This is helping us realize our vision of changing the way people think about and eat fast food,” said Steve Ells, Founder, Chairman and Co-CEO of Chipotle.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 22.6%, with the biggest boost coming in the first quarter when revenue rose 25.8% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 61.2% and in the first quarter, the figure rose 35.1%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 27 cents, and in the first quarter, it was ahead by 4 cents.

Looking Forward: Analysts are pessimistic about the company’s results for the next quarter. The average estimate has fallen for the fourth quarter to $2.21 per share, down from $2.23 seven days ago. In the last thirty days, the average estimate for the fiscal year has moved up from $8.86 per share to $8.96.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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