Chipotle Mexican (CMG) Plunges As Strong EPS Can't Overshadow Weak Sales
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Price: $371.05 --0%
EPS Growth %: +24.4%
Financial Fact:
Food, beverage and packaging: 239.59M
Today's EPS Names:
SFL, RL, PERY, More
EPS Growth %: +24.4%
Financial Fact:
Food, beverage and packaging: 239.59M
Today's EPS Names:
SFL, RL, PERY, More
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Shareholders of Chipotle Mexican Grill (NYSE: CMG) have that one-to-many burritos look in their eyes after-hours Thursday after disappointing second quarter revenues and same store sales.
Chipotle revenue in the quarter increased 20.9 percent to $690.9 million, but missed the consensus of $707.09 million. Comparable restaurant sales increased 8 percent, missing the Wall Street consensus of 10 percent.
Diluted earnings per share rose 61 percent to $2.56, easily topping the consensus of $2.30.
During the quarter the company opened 55 new restaurants, including the first restaurant in Paris, France, bringing the total restaurant count to 1,316.
Restaurant level operating margin was 29.2% in the quarter, an increase of 340 basis points from the prior year period. The increase was primarily driven by leverage from higher average restaurant sales and lower marketing expenses.
"We are pleased that our continued focus on improving the quality and taste of our food, along with strengthening our people culture, has lead to a better dining experience for our customers, and ultimately better financial results for our shareholders," said Steve Ells, Founder, Chairman and Co-CEO of Chipotle.
For 2012, the company expects to open 155-165 new restaurants, sees mid-single digit comparable restaurant sales growth for the full year and an effective tax rate of approximately 39 percent.
On the call, the CFO said slower consumer spending hurt sales.
Shares of Chipotle Mexican Grill last traded at $377.50, down 6.5 percent.
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Chipotle revenue in the quarter increased 20.9 percent to $690.9 million, but missed the consensus of $707.09 million. Comparable restaurant sales increased 8 percent, missing the Wall Street consensus of 10 percent.
Diluted earnings per share rose 61 percent to $2.56, easily topping the consensus of $2.30.
During the quarter the company opened 55 new restaurants, including the first restaurant in Paris, France, bringing the total restaurant count to 1,316.
Restaurant level operating margin was 29.2% in the quarter, an increase of 340 basis points from the prior year period. The increase was primarily driven by leverage from higher average restaurant sales and lower marketing expenses.
"We are pleased that our continued focus on improving the quality and taste of our food, along with strengthening our people culture, has lead to a better dining experience for our customers, and ultimately better financial results for our shareholders," said Steve Ells, Founder, Chairman and Co-CEO of Chipotle.
For 2012, the company expects to open 155-165 new restaurants, sees mid-single digit comparable restaurant sales growth for the full year and an effective tax rate of approximately 39 percent.
On the call, the CFO said slower consumer spending hurt sales.
Shares of Chipotle Mexican Grill last traded at $377.50, down 6.5 percent.
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