Chipotle Mexican Grill Inc. Earnings: Profits Grow by Double Digits For Fifth Straight Quarter

The Cheat Sheet

Chipotle Mexican Grill Inc. reported higher profit for the third quarter as revenue showed growth. 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 Earnings Cheat Sheet for the Third Quarter

Results: Net income for the restaurant rose to $60.4 million ($1.90 per share) vs. $48.2 million ($1.52 per share) in the same quarter a year earlier. This marks a rise of 25.3% from the year earlier quarter.

Revenue: Rose 24.1% to $591.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CMG beat the mean analyst estimate of $1.85 per share. Analysts were expecting revenue of $582.8 million.

Quoting Management: “Chipotle’s strong performance in the quarter and throughout the year is the result of our strong food culture, where we are constantly striving for more sustainable sources for all of our ingredients; and our special people culture, where top performers throughout the company are creating an extraordinary dining experience for each customer,” 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 23.7%, 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 second quarter, net income rose 9% and in the first quarter, the figure rose 22.6%.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of $1.59 versus a mean estimate of net income of $1.68 per share.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is $1.86 per share, a drop from $1.88. The average estimate for the fiscal year is $6.80 per share, down from $6.83 ninety days ago.

Competitors to Watch: McDonald’s Corporation , Good Times Restaurants Inc. , Carrols Restaurant Group, Inc. , Tim Hortons Inc. , Yum! Brands, Inc. , Jack in the Box Inc. , Panera Bread Company , Nathan’s Famous, Inc. , Wendy’s Arby’s Group Inc. , Starbucks Corporation , Sonic Corporation and Darden Restaurants .

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(Source: Xignite Financials)

 

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