Chipotle Mexican Grill Inc Beats 3Q Estimates, Sees Slowing Growth For 2015

Chipotle Mexican Grill, Inc. CMG announced 3Q 2014 earnings Monday, beating estimates.

Revenue was $1.08 billion, and increase of 31.1 percent over the same period in 2013 and above the average estimate of $1.06 billion.

Net income was $130.8 million, an increase of 56.9 percent compared to the same period in 2013.  

Diluted earnings per share was $4.15, beating the average estimate of $3.84 and an increase of 56 percent over the same period in 2013.

43 new restaurants were opened, comparable restaurant sales increased 19.8 percent and restaurant level operating margin was 28.8 percent, an increase of 200 basis points over the same period in 2013.

For the 9 months ending September 30, 2014 revenue increased 28.2 percent compared to 2013 to $3.04 billion with net income of $324.1 million, an increase of 30.8 percent.

The company’s press release forecasted mid-teens comparable restaurant sales increases for 2014 and low to mid-single digit comparable restaurant sales increases for 2015.

“We are extremely pleased with our performance for the third quarter and throughout the year. Our relentless focus on our vision to change the way people think about and eat fast food results in better quality food and a compelling dining experience for our customers, and superior business results for our shareholders. The way we source, prepare and serve our food; the way we hire, develop and empower our people; and the way we operate our business is very different than the traditional fast food model. Recent industry trends suggest the Chipotle model is resonating with customers, who are realizing there are better alternatives to traditional fast food. We believe these trends will continue, and that’s good for our customers and our shareholders,” said Steve Ells, founder, chairman and co-CEO of Chipotle.

Chipotle Mexican Grille, Inc. traded at $640 in the aftermarket, down 2 percent.