CHICAGO (AFX) -- Brisk growth in same-store sales along with openings of new restaurants helped Chipotle Mexican Grill Inc. more than triple its first-quarter profit as revenue surged more than 40%, the company said after Monday's closing bell.
Denver-based Chipotle said it earned $8 million, or 26 cents a share, up from $2.6 million, or 10 cents, the same period a year ago. Revenue came in at $187 million, a 42% increase. Sales at outlets open at least one year rose 19.7%.
The average estimate of analysts polled by Thomson First Call had been for Chipotle -- which parent McDonalds's Corp. took public in January -- to earn 12 cents a share on revenue of $172 million.
Chipotle's operating margins rose to 20.2% from 17.1%, helped along by price increases and higher sales. Meanwhile, general and administrative expenses were down to 8.2% of revenue from 8.4% previously.
In its forecast for yearly results, the company said it expects same-store sales growth to cool off. It posted soft growth in the first quarter of 2005, giving it an easy comparison this time around but 'sequential comparisons [will] become more difficult.'
It is, however, still on target to add 80 to 90 restaurants in 2006 and said it thinks it can grow income from operations by a 25% annual rate in the longer term.
Shares of Chipotle ended the day up 4.2% at $59.27. This story was supplied by MarketWatch. For further information see www.marketwatch.com.
© 2006 AFX News
