We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chipotle Mexican Grill, Inc. (CMG - Free Report) released first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
During the quarter, the company reported benefits from enhanced throughput and effective marketing initiatives like Braised Beef Barbacoa and Chicken Al Pastor, leading to strong sales and transaction growth.
Following the earnings release, the company’s shares rose 3.2% during the after-hours trading session on Apr 24.
Q1 Earnings & Revenue Discussion
In the quarter under review, Chipotle reported adjusted earnings per share (EPS) of $13.37, outpacing the Zacks Consensus Estimate of $11.63. The bottom line increased 27.3% from $10.50 reported in the year-ago quarter.
Quarterly revenues of $2.7 billion surpassed the consensus mark of $2.68 billion by 1%. The top line rose 14.1% on a year-over-year basis on the back of strong comparable restaurant sales growth and new restaurant openings. In the reported quarter, Chipotle opened 47 new restaurants with 43 locations, including a Chipotlane and reported solid performances in terms of new restaurant sales, margins and returns.
Chipotle Mexican Grill, Inc. Price, Consensus and EPS Surprise
Digital sales contributed 36.5% to total food and beverage revenues.
Comparable restaurant sales rose 7% year over year compared with 8.4% growth reported in the previous quarter. Our estimate was pegged at 4.7%.
Costs, Operating Highlights & Net Income
During first-quarter 2024, food, beverage and packaging costs, as a percentage of revenues, came in at 28.8%, down 40 basis points year over year. The upside can be primarily attributed to menu price increases implemented since October 2023. This was partially offset by beef and produce inflation and a challenge in the protein mix resulting from the Braised Beef Barbacoa marketing initiative. We suggested the metric to be 29.2%.
During the quarter under discussion, the restaurant-level operating margin reached 27.5%, up from 25.6% a year ago. The uptick was driven by the benefit of sales leverage, partly mitigated by wage and ingredient inflation. We predicted the metric to be 25.5%.
Adjusted net income in the reported quarter amounted to $369.3 million, up 26.6% year over year. Our estimate for the metric was $308.2 million.
Balance Sheet
As of Mar 31, 2024, the company reported cash and cash equivalents of $727.4 million compared with $560.6 million as of Dec 31, 2023.
As of Mar 31, 2024, inventory totaled $37.9 million compared with $39.3 million as of Dec 31, 2023. Goodwill (as a percentage of total assets) reached 0.3% at the end of the first quarter of 2024.
During the first quarter, CMG repurchased $25 million worth of stock at an average price of $2,320. As of Mar 31, the company had approximately $399.1 million available for the buyback program.
Outlook
For 2024, management expects comps growth in the mid to high-single-digit range.
CMG anticipates to open 285-315 new restaurants in 2024. It suggests a 2024 tax rate in the range of 25-27%.
Zacks Rank & Other Key Picks
Chipotle currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Retail – Restaurants industry include:
The Zacks Consensus Estimate for DIN’s 2025 sales and EPS indicates a rise of 1.7% and 4.7%, respectively, from the year-ago period’s levels.
Wingstop Inc. (WING - Free Report) carries a Zacks Rank #2. WING has a has a trailing four-quarter earnings surprise of 21.3%, on average. The stock has gained 41.4% year to date.
The Zacks Consensus Estimate for WING’s 2024 sales and EPS suggests growth of 21.3% and 21.8%, respectively, from the year-ago period’s levels.
Yum China Holdings, Inc. (YUMC - Free Report) carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 40.7%, on average. Shares of YUMC have fallen 8.5% year to date.
The Zacks Consensus Estimate for YUMC’s 2024 sales and EPS suggests growth of 8.7% and 10%, respectively, from the year-ago period’s levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Chipotle (CMG) Q1 Earnings & Revenues Beat Estimates, Rise Y/Y
Chipotle Mexican Grill, Inc. (CMG - Free Report) released first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
During the quarter, the company reported benefits from enhanced throughput and effective marketing initiatives like Braised Beef Barbacoa and Chicken Al Pastor, leading to strong sales and transaction growth.
Following the earnings release, the company’s shares rose 3.2% during the after-hours trading session on Apr 24.
Q1 Earnings & Revenue Discussion
In the quarter under review, Chipotle reported adjusted earnings per share (EPS) of $13.37, outpacing the Zacks Consensus Estimate of $11.63. The bottom line increased 27.3% from $10.50 reported in the year-ago quarter.
Quarterly revenues of $2.7 billion surpassed the consensus mark of $2.68 billion by 1%. The top line rose 14.1% on a year-over-year basis on the back of strong comparable restaurant sales growth and new restaurant openings. In the reported quarter, Chipotle opened 47 new restaurants with 43 locations, including a Chipotlane and reported solid performances in terms of new restaurant sales, margins and returns.
Chipotle Mexican Grill, Inc. Price, Consensus and EPS Surprise
Chipotle Mexican Grill, Inc. price-consensus-eps-surprise-chart | Chipotle Mexican Grill, Inc. Quote
Digital sales contributed 36.5% to total food and beverage revenues.
Comparable restaurant sales rose 7% year over year compared with 8.4% growth reported in the previous quarter. Our estimate was pegged at 4.7%.
Costs, Operating Highlights & Net Income
During first-quarter 2024, food, beverage and packaging costs, as a percentage of revenues, came in at 28.8%, down 40 basis points year over year. The upside can be primarily attributed to menu price increases implemented since October 2023. This was partially offset by beef and produce inflation and a challenge in the protein mix resulting from the Braised Beef Barbacoa marketing initiative. We suggested the metric to be 29.2%.
During the quarter under discussion, the restaurant-level operating margin reached 27.5%, up from 25.6% a year ago. The uptick was driven by the benefit of sales leverage, partly mitigated by wage and ingredient inflation. We predicted the metric to be 25.5%.
Adjusted net income in the reported quarter amounted to $369.3 million, up 26.6% year over year. Our estimate for the metric was $308.2 million.
Balance Sheet
As of Mar 31, 2024, the company reported cash and cash equivalents of $727.4 million compared with $560.6 million as of Dec 31, 2023.
As of Mar 31, 2024, inventory totaled $37.9 million compared with $39.3 million as of Dec 31, 2023. Goodwill (as a percentage of total assets) reached 0.3% at the end of the first quarter of 2024.
During the first quarter, CMG repurchased $25 million worth of stock at an average price of $2,320. As of Mar 31, the company had approximately $399.1 million available for the buyback program.
Outlook
For 2024, management expects comps growth in the mid to high-single-digit range.
CMG anticipates to open 285-315 new restaurants in 2024. It suggests a 2024 tax rate in the range of 25-27%.
Zacks Rank & Other Key Picks
Chipotle currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Retail – Restaurants industry include:
Dine Brands Global, Inc. (DIN - Free Report) carries a Zacks Rank #2. DIN has a trailing four-quarter earnings surprise of 17.6%, on average. DIN’s shares have declined 8.7% year to date. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for DIN’s 2025 sales and EPS indicates a rise of 1.7% and 4.7%, respectively, from the year-ago period’s levels.
Wingstop Inc. (WING - Free Report) carries a Zacks Rank #2. WING has a has a trailing four-quarter earnings surprise of 21.3%, on average. The stock has gained 41.4% year to date.
The Zacks Consensus Estimate for WING’s 2024 sales and EPS suggests growth of 21.3% and 21.8%, respectively, from the year-ago period’s levels.
Yum China Holdings, Inc. (YUMC - Free Report) carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 40.7%, on average. Shares of YUMC have fallen 8.5% year to date.
The Zacks Consensus Estimate for YUMC’s 2024 sales and EPS suggests growth of 8.7% and 10%, respectively, from the year-ago period’s levels.