Chipotle Mexican Grill Earnings: Still in Growth Mode

Chipotle Mexican Grill, Inc. (NYSE:CMG) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are flat.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Chipotle Mexican Grill, Inc. Earnings Cheat Sheet

Results: Net income increased 6.84% to $61.4 million ($1.95 per diluted share) in the quarter versus a net gain of $57.47 million in the year-earlier quarter.

Revenue: Rose 17.17% to $699.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Chipotle Mexican Grill, Inc. reported adjusted net income of $1.95 per share. By that measure, the company missed the mean analyst estimate of $1.96. It beat the average revenue estimate of $698.86 million.

Quoting Management: “During 2012, we remained focused on our mission to change the way people think about and eat fast food. We’re rewriting the fast food rules, sourcing more and more sustainably raised ingredients and respecting farmers, the environment, animals, and ultimately our customers…

…Our food culture has always set us apart from other fast food restaurants by using great quality ingredients and preparing food using classic cooking techniques in open kitchens on display for all to see. People appreciate these things and we’ll continue to stay focused on them,” said Steve Ells, Founder, Chairman and Co-CEO of Chipotle.

Key Stats:

Revenue decreased 0.19% from $700.53 million in the previous quarter. Net income decreased 15.08% from $72.3 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $2.23 to a profit $2.15. For the current year, the average estimate has moved down from a profit of $8.89 to a profit of $8.76 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials.)