Chipotle Mexican Grill, Inc. Earnings Cheat Sheet: Falling Short of Estimates

Chipotle Mexican Grill, Inc. (NYSE:CMG) reported higher profit for the second 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. Chipotle Hits $10 Billion Market Cap for First Time in Company History>>

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Chipotle Mexican Grill Earnings Cheat Sheet for the Second Quarter

Results: Net income for Chipotle Mexican Grill, Inc. rose to $50.7 million ($1.59 per share) vs. $46.5 million ($1.46 per share) in the same quarter a year earlier. This marks a rise of 9% from the year earlier quarter.

Revenue: Rose 22.4% to $571.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CMG fell short of the mean analyst estimate of $1.68 per share. It beat the average revenue estimate of $558.3 million.

Quoting Management: “We are continuing to focus on our efforts to serve better tasting food, made with ingredients from more sustainable sources, and on building a people culture that delights our customers and allows us to develop the future leaders we will need to support our growth. In spite of some cost challenges during the quarter, we continue to believe that our relentless focus on these things, which really drive our business, will allow us to produce great results for our shareholders over the long term,” 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 22.9%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 24.5% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 22.6% and in the fourth quarter of the last fiscal year, the figure rose 47%.

Gross margin shrank 1.1 percentage points to 25.8%. The contraction appeared to be driven by increased costs, which rose 24.2% from the year earlier quarter while revenue rose 22.4%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 3 cents, and in the fourth quarter of the last fiscal year, it was ahead by 18 cents.

Competitors to Watch: McDonald’s Corporation (NYSE:MCD), Good Times Restaurants Inc. (NASDAQ:GTIMD), Carrols Restaurant Group, Inc. (NASDAQ:TAST), Tim Hortons Inc. (NYSE:THI), Yum! Brands, Inc. (NYSE:YUM), Jack in the Box Inc. (NASDAQ:JACK), Panera Bread Company (NASDAQ:PNRA), Nathan’s Famous, Inc. (NASDAQ:NATH), Wendy’s Arby’s Group Inc. (NYSE:WEN), Starbucks Corporation (NASDAQ:SBUX), Sonic Corporation (NASDAQ:SONC) and Darden Restaurants (NYSE:DRI).

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(Source: Xignite Financials)