Chipotle Mexican Grill Beats Analyst Estimates on EPS

Chipotle Mexican Grill (NYSE: CMG  ) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Chipotle Mexican Grill met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased. GAAP earnings per share grew significantly.

Gross margins dropped, operating margins expanded, net margins grew.

Revenue details
Chipotle Mexican Grill booked revenue of $726.8 million. The 24 analysts polled by S&P Capital IQ predicted revenue of $724.7 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $640.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $2.45. The 27 earnings estimates compiled by S&P Capital IQ predicted $2.14 per share. GAAP EPS of $2.45 for Q1 were 24% higher than the prior-year quarter's $1.97 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.9%, 80 basis points worse than the prior-year quarter. Operating margin was 16.7%, 50 basis points better than the prior-year quarter. Net margin was 10.5%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $804.3 million. On the bottom line, the average EPS estimate is $2.81.

Next year's average estimate for revenue is $3.17 billion. The average EPS estimate is $10.58.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,822 members out of 3,263 rating the stock outperform, and 441 members rating it underperform. Among 1,006 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 933 give Chipotle Mexican Grill a green thumbs-up, and 73 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chipotle Mexican Grill is outperform, with an average price target of $333.57.

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Seth Jayson owned shares of the following at the time of publication: Chipotle Mexican Grill. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Chipotle Mexican Grill. The Motley Fool owns shares of Chipotle Mexican Grill. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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7/25/2014 1:26 PM
CMG $671.06 Up +10.86 +1.64%
Chipotle Mexican G… CAPS Rating: ***

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