Chipotle Mexican Grill, Inc. Announces Fourth Quarter and Full Year 2012 ResultsChipotle Mexican Grill, Inc.NewsRx.com
By a News Reporter-Staff News Editor at Food Weekly News -- Chipotle Mexican Grill, Inc. (NYSE: CMG) reported financial results for its fourth quarter and full year ended December 31, 2012. Highlights for the fourth quarter of 2012 as compared to the fourth quarter of 2011 include: Revenue increased 17.2% to $699.2 million
Comparable restaurant sales increased 3.8%
Restaurant level operating margin was 24.6%, a decrease of 150 basis points
Net income was $61.4 million, an increase of 6.8%
Diluted earnings per share was $1.95, an increase of 7.7%
Opened 60 new restaurants Highlights for the twelve months ended December 31, 2012 as compared to the prior year include: Revenue increased 20.3% to $2.73 billion
Comparable restaurant sales increased 7.1%
Restaurant level operating margin was 27.1%, an increase of 110 basis points
Net income was $278.0 million, an increase of 29.3%
Diluted earnings per share was $8.75, an increase of 29.4%
Opened 183 new restaurants
"During 2012, we remained focused on our mission to change the way people think about and eat fast food. We're rewriting the fast food rules, sourcing more and more sustainably raised ingredients and respecting farmers, the environment, animals, and ultimately our customers. Our food culture has always set us apart from other fast food restaurants by using great quality ingredients and preparing food using classic cooking techniques in open kitchens on display for all to see. People appreciate these things and we'll continue to stay focused on them," said Steve Ells, Founder, Chairman and Co-CEO of Chipotle. Results for the fourth quarter 2012 Revenue for the quarter was $699.2 million, up 17.2% from the prior year period. The growth in revenue was the result of new restaurants not in the comparable base and a 3.8% increase in comparable restaurant sales. Comparable restaurant sales growth was primarily driven by the impact of increased traffic.
During the quarter we opened 60 new restaurants, bringing the total restaurant count to 1,410.
Food costs were 33.5% of revenue, an increase of 130 basis points driven by higher commodity costs. Higher commodity costs were primarily driven by increases in beef costs including steak and barbacoa, and to a lesser extent by increases in the cost of salsa ingredients and dairy.
Restaurant level operating margin was 24.6% in the quarter, a decrease of 150 basis points from the prior year period. The decrease was primarily driven by higher food costs.
G&A costs were 6.2% of revenue, down 20 basis points from the prior year period due to favorable sales leverage. Net income for the fourth quarter of 2012 was $61.4 million, or $1.95 per diluted share, compared to $57.5 million, or $1.81 per diluted share, in the fourth quarter of 2011. Results for the full year ended December 31, 2012 Revenue for the full year of 2012 was $2.73 billion, up 20.3% from the prior year period. The growth in revenue was the result of new restaurants not in the comparable base and a 7.1% increase in comparable restaurant sales. Comparable restaurant sales growth was primarily driven by increased traffic as well as the impact from menu price increases, most of which were taken in 2011.
During the full year, we opened 183 new Chipotle restaurants, bringing the total restaurant count to 1,410.
Restaurant level operating margin was 27.1% for the full year 2012, an increase of 110 basis points from the prior year. The increase was primarily driven by the impact of leverage from higher restaurant sales partially offset by higher food costs.
G&A costs for the full year 2012 were 6.7% of revenue, 10 basis points higher than the prior year. The increase as a percent of revenue was driven by higher non-cash stock based compensation expense and the biennial All Managers' Conference, partially offset by the positive impact of comparable restaurant sales growth.
Net income for the full year 2012 was $278.0 million, or $8.75 per diluted share, compared to $214.9 million, or $6.76 per diluted share for 2011.
Our Board of Directors has also approved the investment of up to an additional $100 million, exclusive of commissions, to repurchase shares of our common stock. This repurchase authorization, in addition to up to approximately $80 million available as of February 5th for repurchases under previously announced repurchase authorizations, may be modified, suspended, or discontinued at any time.
Keywords for this news article include: Finance, Fast Food, Chipotle Mexican Grill Inc..
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