Chipotle Mexican Grill
The 10-second takeaway
For the quarter ended June 30 (Q2), Chipotle Mexican Grill beat slightly on revenues and on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased. GAAP earnings per share increased.
Margins contracted across the board.
Chipotle Mexican Grill reported revenue of $816.8 million. The 21 analysts polled by S&P Capital IQ expected revenue of $802.7 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $690.9 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 $2.85. The 25 earnings estimates compiled by S&P Capital IQ predicted $2.81 per share. Non-GAAP EPS of $2.85 for Q2 were 11% higher than the prior-year quarter's $2.56 per share. GAAP EPS of $2.82 for Q2 were 10% higher than the prior-year quarter's $2.56 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 38.2%, 60 basis points worse than the prior-year quarter. Operating margin was 18.1%, 150 basis points worse than the prior-year quarter. Net margin was 10.8%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $813.2 million. On the bottom line, the average EPS estimate is $2.73.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,848 members out of 3,286 rating the stock outperform, and 438 members rating it underperform. Among 1,033 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 970 give Chipotle Mexican Grill a green thumbs-up, and 63 give it a red thumbs-down.
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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.