NEW YORK, July 30, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Chipotle Mexican Grill, Inc. (NYSE: CMG). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=CMG
Highlights from our CMG Report include:
- Chipotle's Second Quarter Earnings Surpasses Estimates - On July 21, 2015, Chipotle Mexican Grill, Inc. (Chipotle) reported Q2 2015 financial results. During the quarter, Chipotle's revenues grew 14.1% YoY to $1.2 billion driven by new restaurants openings and comparable restaurant sales growth of 4.3%. Meanwhile, Chipotle's revenues missed the Zacks Consensus estimate of $1.21 billion by 1.5%. The Company's net income during Q2 2015 was at $140.2 million or $4.45 per diluted share beating the Zacks Consensus estimate of $4.41. In Q2 2014 Chipotle's net income stood at $110.3 million or $3.50 per diluted share.
- Improvement in Operating Margin - The Company informed that during the reported quarter, Chipotle's Food costs were 33.1% of revenue, declining by 150 bps YoY, due to an increase in menu price, and favorable dairy and avocado costs, partially offset by increased beef and packaging costs as compared to Q2 2014. Furthermore, restaurant level operating margin was 28.0%, representing an increase of 70 bps from the Q2 2014, due to favorable sales leverage and lower food costs, offset by increased labor costs as a percent of revenue. Chipotle noted that during the Q2 2015, the Company opened 48 new restaurants, bringing the total restaurant count to 1,878.
- Strong Performance in H1 2015 - Chipotle noted that its revenue for the first six months of 2015 was $2.3 billion, up 17.0% from corresponding period prior year, largely due to new restaurants openings and a 7.1% increase in comparable restaurant sales. Chipotle's net income for H1 2015 stood at $262.8 million, or $8.34 per diluted share, compared to $193.3 million, or $6.14 per diluted share, in the first half of 2014. Furthermore, the Company opened 97 new restaurants during the first six months of 2015.
- Guidance Update - For FY 2015, the Company expects its new restaurant openings at or above the high end of the previously announced range of 190-205. Chipotle also expects low-to-mid single digit increase in its comparable restaurant sales. As per Zacks research, the Company's comparable restaurant sales guidance is much lower than 16.8% growth witnessed in 2014.
To find out how this influences our rating on Chipotle Mexican Grill, Inc., read the full report in its entirely here: http://www.aciassociation.com/?c=CMG
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