Chipotle Q1 Sales Miss Expectations, Shares Slide
Chipotle Mexican Grill, Inc. (NYSE: CMG) reported better-than-expected earnings for the first quarter, but the company's sales missed analysts' estimates.
The Denver, Colorado-based company reported a quarterly profit of $122.6 million, or $3.88 per share, versus a year-ago profit of $83.1 million, or $2.64 per share.
Its revenue surged 20.4 percent to $1.09 billion. However, analysts were projecting earnings of $3.66 per share on revenue of $1.11 billion.
Its same-store sales gained 10.4 percent in the quarter.
Restaurant level operating margin widened 160 basis points to 27.5 percent. General and administrative expenses slipped 160 basis points to 5.8 percent of revenue.
Chipotle opened 49 new restaurants during the first quarter.
"We are very proud of our start to 2015, as our average sales volumes reached a record $2.5 million per restaurant. We attribute this success to our unique food culture and people culture, which are the driving forces to create a new fast food model. The quarter was not without its challenges however, as we suspended one of our primary pork suppliers and are exploring options to increase the supply of pork that meets our high standards. But we remain confident that higher quality, Responsibly Raised® ingredients taste better and will continue to resonate with our customers," said Steve Ells, founder, chairman and co-CEO of Chipotle.
The average estimate among 90 Estimize users was for earnings of $3.66 per share and revenue of $1.11 billion.
For 2015, the company projects comparable restaurant sales growth in the low-to-mid single digit range.
Chipotle Mexican Grill shares fell 4.85 percent to $658.91 in the after-hours trading session.
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