Continuing to bypass many of the economic roadblocks that have slowed several competitors, Chipotle Mexican Grill Inc. reported a 31.3-percent jump in second-quarter profit on strong sales at its fast-casual chain.
The Denver-based company reported net income of $46.5 million, or $1.46 per share, for the June 30-ended quarter, compared with net income of $35.4 million, or $1.10 per share, in the same period a year ago.
Second-quarter revenue rose 20.1 percent on a year-over-year basis, to $466.8 million. Chipotle attributed the improvement to same-store sales growth of 8.7 percent, which it said derived primarily from higher guest traffic, and a nearly 13-percent increase in its total store count, to 1,001 units, since the end of 2009’s third quarter.
Contributing to the higher income was a 90-basis-point improvement in restaurant-level operating margin, to 26.9 percent of sales, that was largely driven by the impact of higher same-store sales and lower food costs, Chipotle said.
For the first six months ended June 30, Chipotle said its net income rose 38.7 percent, to $84.3 million, or $2.65 per share, on a 17.9-percent hike in revenue, to $876.5 million. Same-store sales increased 6.6 percent.
Chipotle, which had opened 45 restaurants so far this year as of the end of the second quarter, said it anticipates opening another 75 to 85 before the end of the year. The company forecasted full-year same-store sales growth in the mid- to high-single digit range.
“The second quarter was filled with a number of very exciting milestones,” said Steve Ells, Chipotle's chairman, co-chief executive and founder. “We opened our first restaurant in London; we opened our 1,000th restaurant in Flower Mound, Texas; and we continued to advance our Food with Integrity program by introducing barbacoa made with naturally raised beef into all of our restaurants.”
Contact Alan J. Liddle at [email protected].