News Column

Chipotle Mexican Grill Reports Fourth Quarter and Full Year 2013 Results

February 4, 2014

Chipotle Mexican Grill, Inc. reports financial results for its fourth quarter and full year ended December 31, 2013 . In a release on January 30 , the Company noted that highlights for the fourth quarter of 2013 as compared to the fourth quarter of 2012 include: -Revenue increased 20.7 percent to $844.1 million -Comparable restaurant sales increased 9.3 percent -Restaurant level operating margin was 25.6 percent, an increase of 100 basis points -Net income was $79.6 million , an increase of 29.8 percent -Diluted earnings per share was $2.53 , an increase of 29.7 percent -Opened 56 new restaurants Highlights for the twelve months ended December 31, 2013 as compared to the prior year include: -Revenue increased 17.7 percent to $3.21 billion -Comparable restaurant sales increased 5.6 percent -Restaurant level operating margin was 26.6 percent, a decrease of 50 basis points -Net income was $327.4 million , an increase of 17.8 percent -Diluted earnings per share was $10.47 , an increase of 19.7 percent -Opened 185 new restaurants "We are very proud of our accomplishments during 2013. Over the past 20 years, we have created a very unique and special restaurant company. Chipotle is a place that appeals to a diverse customer base throughout the country and beyond. We offer our customers a range of flavors from a focused selection of beautiful, top-quality ingredients that are expertly prepared by a passionate team of extraordinary people. Our focus on our unique people and food cultures has created an impressive demand for a restaurant experience that is redefining fast food for the better," said Steve Ells , Founder, Chairman and Co-CEO of Chipotle. Results for the fourth quarter 2013 Revenue for the quarter was $844.1 million , up 20.7 percent from the prior year period. The growth in revenue was the result of new restaurants not in the comparable base and a 9.3 percent increase in comparable restaurant sales. Comparable restaurant sales growth was primarily driven by the impact of increased traffic. During the quarter we opened 56 new restaurants, bringing the total restaurant count to 1,595. Food costs were 33.9 percent of revenue, an increase of 40 basis points driven mostly by higher avocado costs and to a lesser extent from tomato and corn salsa costs, partially offset by lower dairy and steak costs. Restaurant level operating margin was 25.6 percent in the quarter, an increase of 100 basis points from the prior year period. The increase was due to favorable sales leverage and lower marketing costs, partially offset by higher food costs. G&A costs were 6.6 percent of revenue, up 40 basis points from the prior year due to higher bonus expenses and employee taxes. Net income for the fourth quarter of 2013 was $79.6 million , or $2.53 per diluted share, compared to $61.4 million , or $1.95 per diluted share, in the fourth quarter of 2012. Results for the full year ended December 31, 2013 The Company also noted, revenue for the full year of 2013 was $3.21 billion , up 17.7 percent from the prior year period. The growth in revenue was the result of new restaurants not in the comparable base and a 5.6 percent increase in comparable restaurant sales. Comparable restaurant sales growth was primarily driven by increased traffic. During the full year 185 new restaurants were opened, bringing the total restaurant count to 1,595. Food costs were 33.4 percent of revenue, an increase of 80 basis points mostly from higher salsa, meat, and dairy costs. Restaurant level operating margin was 26.6 percent for the full year 2013, a decrease of 50 basis points from the prior year. The decrease was primarily driven by higher food costs partially offset by favorable sales leverage from higher restaurant sales. G&A costs for the full year 2013 were 6.3 percent of revenue, 40 basis points lower than the prior year. The decrease as a percent of revenue was driven by costs in 2012 from our biennial All Managers' Conference and by the positive impact of comparable restaurant sales growth. Net income for the full year 2013 was $327.4 million , or $10.47 per diluted share, compared to $278.0 million , or $8.75 per diluted share for 2012. "Our fourth quarter and 2013 results demonstrated our ability to focus on and run great restaurants. Our empowered restaurant teams continued to delight our customers and provide an exceptional dining experience to our guests as more people were attracted to and visited our restaurants than ever before," said Monty Moran , co-CEO of Chipotle. Outlook For 2014, management expects the following: -180 - 195 new restaurant openings -Low to mid single digit comparable restaurant sales excluding any menu price increases -An estimated effective tax rate of 39.2 percent, which excludes federal work opportunity and R&D credits, which have not been renewed for 2014. Chipotle continues to offer a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads made from fresh, raw ingredients, prepared using classic cooking methods and served in a distinctive atmosphere. More information: Chipotle.com ((Comments on this story may be sent to newsdesk@closeupmedia.com ))


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Professional Services Close - Up


Story Tools