Chipotle Mexican Grill Inc. (NYSE: CMG) – Q2 FY 2011 Earnings on July 19
By:NewsyStocks   Thursday, July 07, 2011 1:09 PM

Denver, Colorado-based, Mexican inspired restaurant chain, Chipotle Mexican Grill Inc. (NYSE: CMG) is expected to report its second quarter FY 2011 earnings results on July 19. In the last four quarters, the company's reported EPS exceeded Wall Street's consensus estimates by margins in the range of 1.40 percent to 16 percent.

Chipotle Mexican Grill Inc. and its subsidiaries operate restaurants throughout the United States, as well as two restaurants in Toronto, Canada and one in London, England. 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.

For Q1 FY 2011

  • For Q1 FY 2011Revenue was $509.4 million, up 24.3 percent, compared with revenue of $409.6 million in the first quarter FY 2011. The growth in revenue was the result of new restaurants not in the comparable base. The company reported a 12.4 percent increase in comparable restaurant sales.
  • Net income was $46.4 million, up 22 percent from net income of $37.8 million in the same quarter last year.
  • Earnings increased 22 percent to $1.46 per diluted share, compared with earnings of $1.19 per diluted share in the comparable quarter last year.
  • Restaurant-level operating margin was 25.2 percent, a decrease of 90 basis points over the prior year period.
  • Chipotle opened 12 new restaurants bringing the total restaurant count to 1,095.

For FY 2010

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

Company's Guidance

For FY 2011, the company expects to open 135 to 145 new restaurants. The comparable restaurant sales growth is expected to be in the low single digits, with an effective tax rate of approximately 38.3 percent.

Analysts' Forecast

For the second quarter, analysts' EPS estimates range from a low of $1.57 to a high of $1.81 per share, compared with a consensus estimate of $1.46 per share to $1.68 per share in the year ago quarter. For this quarter, analysts' revenue estimates range from a low of $527 million to a high of $580.60 million, compared with a consensus estimate of $466.84 million to $557.23 million in the same quarter a year ago. For the second quarter, the consensus EPS forecast has remained unchanged at $1.68 per share for the last 60 days.

In the last 52 weeks, Chipotle's stock has been trading in the range of $127.30 to $327.18. The stock is trading at its 52 week high of $327.18. On March 2, 2011, analysts at Morgan Keegan upgraded the stock rating to Market Perform from Underperform.