Chipotle's record sales, 26 percent profit jump fuel after-hours stock surge
- Ed Sealover[1]
- Reporter- Denver Business Journal
- This email address is being protected from spambots. You need JavaScript enabled to view it.[2] | Facebook[3] | Twitter[4] | Capitol Business blog[5]
Chipotle Mexican Grill[6] Inc. Monday reported more than $1 billion in quarterly sales for the first time in the restaurant's history.
The sales record and a 25.5 percent year-over-year leap in net income led to a flurry of after-hours trading that drove its stock price up 10 percent.
Revenue for the Denver-based Mexican restaurant chain (NYSE: CMG) jumped 28.6 percent from the second quarter of 2013, reaching $1.05 billion. That increase was fueled by a 17.3 percent increase in same-store sales, as well as the addition of 45 new restaurants, bringing to 1,681 the total number of locations the chain operates.
CFO Jack Hartung[7] said the successful quarter also pushed average sales -- at stores that have been open for at least one year -- to more than $2.3 million for the first time.
He noted that the 17.3 percent same-store sales increase was the second-highest in Chipotle history, ranking only behind the 19.7 percent increase in the second quarter of 2006, when the company operated less than 500 restaurants and had been a publicly-traded company for less than a year.
"We're pleased that we continued to drive excellent results in the second quarter, including one of our strongest sales comps as a public company," said Steve Ells[8], chairman and co-CEO.
Company earnings also rose in the three months that ended June 30, with net income on the quarter coming in at $110.27 million, up 25.5 percent from the third quarter of 2013 total of $87.85 million. Earnings per diluted share in the third quarter were $3.50, up from $2.82 in the year-ago quarter.
Analysts on average were expecting earnings of $3.08 a share on revenue of $990 million, Thomson Reuters[9] reported.
Ed Sealover covers government, health care, tourism, airlines and hospitality for the Denver Business Journal and writes for the "Capitol Business" blog. Phone: 303-803-9229.
References
- ^ Ed Sealover (feeds.bizjournals.com)
- ^ This email address is being protected from spambots. You need JavaScript enabled to view it. (feeds.bizjournals.com)
- ^ Facebook (www.facebook.com)
- ^ Twitter (twitter.com)
- ^ Capitol Business blog (www.bizjournals.com)
- ^ Chipotle Mexican Grill (www.bizjournals.com)
- ^ Jack Hartung (feeds.bizjournals.com)
- ^ Steve Ells (feeds.bizjournals.com)
- ^ Thomson Reuters (www.bizjournals.com)