Chipotle Mexican Grill
The 10-second takeaway
For the quarter ended June 30 (Q2), Chipotle Mexican Grill missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Margins improved across the board.
Chipotle Mexican Grill tallied revenue of $690.9 million. The 20 analysts polled by S&P Capital IQ expected revenue of $705.9 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $571.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.56. The 22 earnings estimates compiled by S&P Capital IQ predicted $2.30 per share. GAAP EPS of $2.56 for Q2 were 61% higher than the prior-year quarter's $1.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.8%, 210 basis points better than the prior-year quarter. Operating margin was 19.6%, 470 basis points better than the prior-year quarter. Net margin was 11.8%, 290 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $710.7 million. On the bottom line, the average EPS estimate is $2.31.
Next year's average estimate for revenue is $2.76 billion. The average EPS estimate is $8.87.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,585 members out of 3,106 rating the stock outperform, and 521 members rating it underperform. Among 1,009 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 900 give Chipotle Mexican Grill a green thumbs-up, and 109 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chipotle Mexican Grill is hold, with an average price target of $438.84.
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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 owns shares of Chipotle Mexican Grill. Motley Fool newsletter services have recommended buying shares of Chipotle Mexican Grill. Motley Fool newsletter services have recommended creating a bear put spread position in 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.