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Bucking downturn, Chipotle posts 38% profit rise

DENVER Increased customer visits, more locations and menu price increases helped Chipotle Mexican Grill Inc. boost its first-quarter net income by 38.9 percent to $17.9 million and its revenue by 29.3 percent to $305.3 million.

The 730-unit, fast-casual chain also posted industry-leading same-store sales results, up 10.2 percent in the first quarter over the same period last year.

Per-share earnings in the latest quarter ended March 31 rose to 52 cents, from 38 cents per share a year ago.

“Given the extremely challenging operating environment, our double-digit comparable-restaurant sales increases demonstrates the unique bond we have with our customers,” Jack Hartung, chief financial officer, said in a statement.

Price increases associated with the introduction of naturally raised meats in some markets also helped improve sales and operating margins, the company said. Unit-level margins rose 0.5 percent in the latest quarter to 21.2 percent, Chipotle added.

Buoyed by the strong revenue and margin results, the company said it was sticking with plans to open between 130 and 140 new locations this year, which would be a record for the company. The difficult economic times, which have created an environment of slowed sales and skyrocketing costs, have caused many restaurant chains to cut planned openings. In the latest quarter Chipotle opened 28 new stores in existing markets.

TAGS: Finance News
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