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Last Update: 19-Oct-12 09:18 ET
Chipotle Mexican Grill shares fall 10% following miss on earnings
Chipotle Mexican Grill (CMG $254.80 -31.13) reported third quarter earnings of $2.27 per share, $0.03 worse than the Capital IQ consensus of $2.30, while revenues rose 18.3% year/year to $700.5 mln vs the $702.26 million consensus. Comparable restaurant sales growth was primarily driven by the impact of increased traffic and to a lesser extent by menu price increases taken in the Pacific Region in 2012. Transaction trends were about the same as the second quarter, but comparable restaurant sales increases were impacted by the loss of 330 basis points from price increases that rolled off during the quarter. Restaurant level operating margin was 27.4% in the quarter, an increase of 70 basis points from the prior year period. The increase was primarily driven by leverage from higher average restaurant sales. G&A costs were 6.9% of revenue, up 60 basis points from the prior year period. For 2012, management expects the following: New restaurant openings at, or above, the previously announced range of 155-165; Mid-single digit comparable restaurant sales growth for the full year; An effective tax rate of approximately 39.0% For 2013, management expects the following: 165-180 new restaurant openings; Flat to low-single digit comparable restaurant sales; Approximately the same effective tax rate as 2012.
