Chipotle Mexican Grill
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Chipotle Mexican Grill met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
Chipotle Mexican Grill logged revenue of $700.5 million. The 22 analysts polled by S&P Capital IQ predicted revenue of $702.3 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $591.9 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 $2.27. The 25 earnings estimates compiled by S&P Capital IQ predicted $2.31 per share. GAAP EPS of $2.27 for Q3 were 19% higher than the prior-year quarter's $1.90 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 37.9%, 60 basis points better than the prior-year quarter. Operating margin was 17.0%, 20 basis points better than the prior-year quarter. Net margin was 10.3%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $690.4 million. On the bottom line, the average EPS estimate is $2.10.
Next year's average estimate for revenue is $2.72 billion. The average EPS estimate is $8.91.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,690 members out of 3,154 rating the stock outperform, and 464 members rating it underperform. Among 916 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 822 give Chipotle Mexican Grill a green thumbs-up, and 94 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 $388.00.
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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 recommend Chipotle Mexican Grill and 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.