Chipotle (CMG) Stock Soars on Better than Expected Earnings

Shares of Chipotle Mexican Grill Inc. (CMG) were trading up +62.04 points or +12.56 percent to $556.00 per share in pre-market trading this morning, after the company released impressive fourth quarter earnings. The company reported better than expected sales at established restaurants and an almost 30 percent increase in earnings. Chipotle stock closed at $493.96, up +9.46 or +1.95 percent in Thursdayâ s regular trading session.

Denver, Colorado based Chipotle Mexican Grill Inc. is a restaurant chain founded by Steve Ells in 1993. Ells established 16 locations in Colorado, when McDonaldâ s Corporation (MCD) invested heavily in the company in 1998. McDonaldâ s then divested its shares in the company by 2006 after the company had grown to 500 locations. After adding an additional 56 restaurants in the fourth quarter, the company now counts with 1,595 locations in the United States, Canada, France and Germany and employs more than 37,000 people worldwide. Fourth quarter results versus last year had the companyâ s revenue increase +20.7 percent to $844.1 million, while comparable restaurant sales, grew by +9.3 percent. Restaurant level operating margins increased 100 bps to +25.6%. Net income increased +29.8 percent to $79.6 million, with diluted earnings per share increasing +29.7 percent to $2.53. In 2012â s fourth quarter the company earned $61.4 million or $1.95 per share. For the entire year, revenue rose to $3.21 billion, an improvement of +17.7 percent over 2012, while comparable restaurant sales increased +5.6 percent. Restaurant level operating margins dropped 50 bps to 26.6 percent. Net income for the year increased +17.8 percent to $327.4 million with diluted earnings per share coming to $10.47, an improvement of +19.7 percent. Chipotle opened a total of 185 new restaurants during the year. Steve Ells, founder, Chairman and Co-Chief Executive Officer said after the earnings release that, â

Published on Jan 31, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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