Chipotle Mexican Grill Earnings: Fifth Straight Quarter of Double-Digit Growth
Chipotle Mexican Grill Inc. (NYSE:CMG) reported net income above Wall Street’s expectations for the most recent quarter. Chipotle Mexican Grill develops and operates fast-casual, fresh Mexican food restaurants in 35 states throughout the United States, the District of Columbia, and Ontario, Canada.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
Chipotle Mexican Grill Earnings Cheat Sheet for the Second Quarter
Results: Net income for Chipotle Mexican Grill Inc. rose to $81.7 million ($2.56 per share) vs. $50.7 million ($1.59 per share) in the same quarter a year earlier. This marks a rise of 61.2% from the year-earlier quarter.
Revenue: Rose 20.9% to $690.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Chipotle Mexican Grill Inc. beat the mean analyst estimate of $2.30 per share. It fell short of the average revenue estimate of $707.1 million.
Quoting Management: “We are pleased that our continued focus on improving the quality and taste of our food, along with strengthening our people culture, has lead to a better dining experience for our customers, and ultimately better financial results for our shareholders,” said Steve Ells, Founder, Chairman and Co-CEO of Chipotle.
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 23.4%, with the biggest boost coming in the first quarter when revenue rose 25.8% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 35.1% and in the fourth quarter of the last fiscal year, the figure rose 23.7%.
The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of $1.97 versus a mean estimate of net income of $1.93 per share.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from $2.36 a share to $2.37 over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $8.76 per to share to $8.86.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Hot Additional Stories: