Chipotle Mexican Grill Inc.
) recently declared its preliminary fourth-quarter 2012 results.
The company will report detailed fourth quarter and full year
2012 financial results on February 5.
The company projects fourth-quarter 2012 earnings per share
between $1.92 and $1.97. The Zacks Consensus Estimate for
the fourth quarter 2012 is $2.10 per share.
Chipotle expects fourth quarter 2012 net revenues to increase
17.2% year on year to $699.2 million, ahead of the Zacks
Consensus Estimate of $692 million. The sales in the quarter are
likely to be driven by higher comparable restaurant sales
(comps). In addition, the company projects that the comps are
likely to grow by 3.8% year over year owing to higher
Further, the restaurant's operating margin is projected to
decline 150 basis points (bps) from year-earlier quarter to
24.6%. Food expenditures are expected to rise 130 bps from the
prior-year period to 33.5% of revenue due to the hike in
commodity costs. However, the company expects that commodity
prices will be stable in 2013.
Other operating costs are expected to be 11.5% of revenue, up
sequentially. The cost is likely to be driven by higher marketing
and promotional related expenses.
During the quarter, Chipotle launched 60 restaurants.
Management announced that it has achieved significant revenue
growth in 2012 driven by record amount of restaurant openings and
The company operates quick-casual, fresh Mexican food
restaurant chains in 35 states throughout the United States, the
District of Columbia and Ontario, Canada.
Earlier in third-quarter of 2012, Chipotle reported revenues
of $700.5 million, up 18.4% year over year buoyed by new
restaurant openings and higher comparable store sales (comps).
The restaurant operating margin expanded 70 bps to 27.4%,
attributable to a 60 bps cut in labor, 30 bps drop in occupancy
costs, 70 bps decrease in other operating costs and 40 bps slip
in food, beverage and packaging costs (as a percentage of total
Chipotle, which competes with the likes of
Tim Hortons Inc.
Brinker International, Inc.
), currently carries a Zacks Rank #3 (Hold). We are maintaining
our long-term Neutral recommendation on the stock.
CHIPOTLE MEXICN (CMG): Free Stock Analysis
BRINKER INTL (EAT): Free Stock Analysis
TIM HORTONS INC (THI): Free Stock Analysis
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