Chipotle Mexican Grill (CMG) Posts Q3 EPS of $0.27; Comps Miss Views; Additional Stock Buyback Approved

October 25, 2016 4:12 PM EDT

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Chipotle Mexican Grill (NYSE: CMG) reported Q3 EPS of $0.27, $1.32 worse than the analyst estimate of $1.59. Revenue for the quarter came in at $1 billion versus the consensus estimate of $1.09 billion.

EPS impairment included $0.29 related to the ShopHouse impairment charge and $0.23 due to the deferral of revenue from Chiptopia

Comps fell 21.9 percent, versus an 18.7 percent drop expected

Stock Buyback:

Our Board of Directors has also approved the investment of up to an additional $100 million, exclusive of commissions, to repurchase shares of our common stock. This repurchase authorization, in addition to up to approximately $69.2 million available as of September 30, 2016 for repurchases under a previously announced repurchase authorization, may be modified, suspended, or discontinued at any time

Outlook

For 2016, management expects the following:

  • New restaurant openings for the full year at or above the high end of the previously-disclosed range of 220 to 235
  • Comparable restaurant sales declines in the low single-digits for the fourth quarter
  • An effective full year tax rate of approximately 38.2%, which benefited from the recognition of tax credits earned in prior years

For 2017, management is targeting the following:

  • 195 - 210 new restaurant openings
  • Comparable restaurant sales increases in the high single-digits
  • Restaurant level operating margins of 20%
  • An estimated effective full year tax rate of approximately 39.5%, which will be impacted by volatility due to a recently issued accounting standard that changes how the company accounts for taxes associated with stock-based compensation awards.
  • $10.00 earnings per diluted share

For earnings history and earnings-related data on Chipotle Mexican Grill (CMG) click here.



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