It's Chipotle's world, and we're all just eating in it.
The fast casual burrito chain crushed yet another quarter's earnings report, delivering per share profit of $4.15 -- an increase of 56% from last year and well above Wall Street's consensus estimate of $3.84. Chipotle revenues were a closer call, hitting $1.08 billion for the quarter against $1.06 billion estimated -- but that's another 31% increase from a year ago. Same store sales also jumped an incredible 19.8%, more than 3 times what they did in the 2013 third quarter.
Chipotle added 43 new restaurants in the quarter and expects up to 195 by the end of fiscal 2014, and another 200 in 2015. That would bring Chipotle's total locations up to about 2,000. The only small hiccup in today's report was a lowering of 2015 outlook. Chipotle projects low to mid-single digit comparable restaurant sales increases next year.
That revision may explain why the stock fell 2% in after hours trading, despite the extra heaping of guacamole in the main earnings numbers. Or perhaps investors were correcting after Chipotle shares rose about that much during the day's trading. The stock is up more than 20% year to date.
“We are extremely pleased with our performance for the third quarter and throughout the year. Our relentless focus on our vision to change the way people think about and eat fast food results in better quality food and a compelling dining experience for our customers, and superior business results for our shareholders," chairman and co-CEO Steve Ells said in a statement. "Recent industry trends suggest the Chipotle model is resonating with customers, who are realizing there are better alternatives to traditional fast food. We believe these trends will continue, and that’s good for our customers and our shareholders."
