Chipotle Mexican Grill (CMG) Tops Q4 EPS by 31c; Says CDC Investigation Over, Approves $300M Buyback

Chipotle Mexican Grill (NYSE: CMG) reported Q4 EPS of $2.17, $0.31 better than the analyst estimate of $1.86. Revenue for the quarter came in at $997.5 billion versus the consensus estimate of $1.01 billion.

Comparable restaurant sales decreased 14.6%

2016 will be a very difficult year relative to our past performance. But, by staying true to our food culture and unique people culture, and layering on our rigorous food safety program, we are confident that we are now in a position to aggressively welcome customers into our restaurants and restore customer confidence in the things that make Chipotle great. With our full commitment to becoming an industry leader in food safety, and our continued focus on delivering an exceptional customer experience, we are confident that Chipotle will emerge as an even stronger company,” said Monty Moran, co-CEO of Chipotle.

On January 28, 2016, Chipotle was served with a subpoena broadening the scope of the previously-announced criminal investigation by the U.S. Attorney’s office for the Central District of California. The new subpoena requires us to produce documents and information related to company-wide food safety matters dating back to January 1, 2013, and supersedes the subpoena served in December 2015 that was limited to a single Chipotle restaurant in Simi Valley, California. We intend to fully cooperate in the investigation.

Additionally, our Board of Directors has approved the investment of up to an additional $300 million, exclusive of commissions, to repurchase shares of our common stock. This repurchase authorization, in addition to up to approximately $178 million available as of January 31 for repurchases under previously announced repurchase authorizations, may be modified, suspended, or discontinued at any time.

Outlook

For 2016, management expects the following:

220-235 new restaurant openings
An effective full year tax rate of approximately 39.0%

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

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