Chipotle Mexican Grill Inc. (NYSE: CMG) – Q1 FY 2011 Earnings Preview
Wednesday, April 06, 2022 7:00 PM

Denver, Colorado-based, Mexican inspired restaurant chain, Chipotle Mexican Grill Inc. (NYSE: CMG) is expected to report its first quarter FY 2011 earnings results on April 20. For the previous four quarter, the company’s reported EPS exceeded analysts’ consensus estimates by margins in the range of 5 percent to 25.30 percent.

Chipotle Mexican Grill, Inc. and its subsidiaries operate restaurants throughout the United States, as well as in Toronto and London. As of December 31, 2010, the company operated 1,084 restaurants. The company’s restaurants serve a focused menu of tacos, burritos, salads and burrito bowls, made using fresh ingredients. The company manages its operations and restaurants based on five regions that all report into a single segment.

Ffor the fourth quarter of  2010, CMG reported revenues of $482.5 million, up 24.5% from $387.5 million reported in year earlier period.  The growth in revenue was the result of new restaurants plus a 12.6% increase in comparable restaurant sales. Comparable restaurant sales growth was primarily driven by increased traffic in the quarter. During the last quarter, Chipotle opened 62 new restaurants, for a total restaurant count to 1,084. Net income for the fourth quarter of 2010 was $46.4 million, $1.47 per share, compared to $31.6 million, $0.99 per share, a year earlier.

For full year ended December 2010, revenue was $1.84 billion, up 20.9 percent compared to  $1.51 billion reported in 2009. In 2010, Chipotle opened 129 restaurants, including one restaurant in London and one in Toronto. Net income for the full year of 2010 was $179.0 million, $5.64 per share, compared to $126.8 million, or $3.95 per share for 2009.

Chipotle has not declared or paid any cash dividend on its common stock and its unsecured revolving credit facility prohibits it from paying cash dividends. The company does not have a share repurchase program for its publicly traded shares.

For the first quarter, analysts’ EPS estimates range from a low of $1.25 to $1.62 per share, with a consensus estimate of $1.43 per share. Earnings a year ago for the quarter were $1.19 per share. For this quarter, analysts’ revenue estimates range from a low of $482 million to a high of $505 million and a consensus estimate of $494 million. Sales were $409 million in the same quarter a year ago. For the quarter ending March, 2011, the consensus EPS forecast has dropped from $1.48 per share estimated 60 days ago to the current $1.43 per share.

For the last 52 weeks, CMG’s shares have traded in the range of $118.70 to $278. The current share price is near the top of the 52 week range. On March 2, 2011, the analyst at Morgan Keegan upgraded the stock rating to Market perform from Underperform. Timely advice for a stock that has double in value over the last year!