WASHINGTON (dpa-AFX) - Chipotle Mexican Grill Inc. (CMG) Monday reported a near 26 percent increase in profit for the second quarter, as revenues surged on new restaurant openings and strong same-restaurant sales. Earnings and revenues for the quarter came in ahead of analysts estimates. Shares surged 10 percent in after hours trade, following the news.
Denver, Colorado-based Chipotle's second-quarter profit rose to $110.3 million or $3.50 per share from $87.9 million or $2.82 per share last year. On average, 28 analysts polled by Thomson Reuters expected earnings of $3.08 per share. Analysts' estimates typically exclude one-time items
Chipotle, a burrito and tacos chain spun off from McDonald's in 2006, said its revenue for the quarter grew 28.6 percent to $1.05 billion from $816.79 million a year ago. Analysts had a consensus revenue estimate of $988.94 million.
The company said the revenue growth reflects a 17.3 percent increase in comparable restaurant sales as well as new restaurants. The company opened 45 new restaurants during the quarter, bringing the total restaurant count to 1,681.
Food costs were 34.6 percent of revenue, an increase of 150 basis points, driven by increased prices for beef, avocados, and dairy, partly offset by the menu price increase and lower tomatillo prices.
Restaurant level operating margin for the quarter dropped 30 basis points to 27.3 percent from last year, primarily driven by higher food and marketing costs.
Looking forward to the full year 2014, Chipotle now expects comparable restaurant sales to increase in mid-teens; it earlier expected an increase in high single digit, excluding any menu price increase.
The company expects to open 180 to 195 new restaurants in the year.
CMG closed Monday's trading at $589.93, down $2.49 or 0.42%, on the NYSE. The stock, however, gained $59.07 or 10.01%, in after-hours trade.
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