Chipotle Mexican Grill (CMG) Tops Q2 EPS by 6c; Comps Rise 3.3%

Chipotle Mexican Grill (NYSE: CMG) reported Q2 EPS of $2.87, $0.06 better than the analyst estimate of $2.81. Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $1.26 billion.

• Revenue increased 8.3% to $1.3 billion
• Comparable restaurant sales increased 3.3%
• Restaurant level operating margin was 19.7%, an increase from 18.8%
• Net income was $46.9 million, including the after-tax impact of $33.4 million in expenses related to restaurant asset impairment, corporate restructuring, and certain legal costs, a 29.7% decrease from $66.7 million; excluding those items, adjusted net income was $80.2 million, an increase of 20.2%.1
• Diluted earnings per share was $1.68, net of a $1.19 after-tax impact from expenses related to restaurant asset impairment, corporate restructuring, and certain legal costs, a 27.6% decrease from $2.32. Adjusted diluted earnings per share excluding these charges was $2.87, an increase of 23.7%.1
• Opened 34 new restaurants and closed or relocated 8

For 2018, management is expecting the following:

• Comparable restaurant sales increases in the low to mid-single digits, an increase from the prior low-single digit expectations
• New restaurants openings at the lower end of the previously announced guidance of 130 to 150
• In Q3, we expect our effective tax rate to be around 30.3%, and our Q4 tax rate to be as high as 43%. Both of these increases are due to a lower pretax income as a result of restructuring expenses and restaurant closure costs, as well as an expected write-off of deferred tax assets for stock compensation awards that likely will not vest

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

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