DENVER--(BUSINESS WIRE)--Feb. 1, 2012-- Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its fourth quarter and full year ended December 31, 2011.
Highlights for the fourth quarter of 2011 as compared to the fourth quarter of 2010 include:
Highlights for the twelve months ended December 31, 2011 as compared to the prior year include:
"During 2011, we remained focused on our mission to change the way the world thinks about and eats fast food, while continuing to strengthen our people culture and our unit economic model. Our success is rooted in serving great tasting food and it has been since day one. Our sourcing of food made from the finest ingredients, which is raised with respect for the animals, the environment, and the farmers is at the heart of that effort," said Steve Ells, Founder, Chairman and Co-CEO of Chipotle.
Revenue for the quarter was $596.7 million, up 23.7% from the prior year period. The growth in revenue was the result of new restaurants not in the comparable base and an 11.1% increase in comparable restaurant sales. Comparable restaurant sales growth was primarily driven by increased traffic in the quarter as well as the impact of menu price increases implemented between March and August.
During the quarter we opened 67 new restaurants, bringing the total restaurant count to 1,230.
Restaurant level operating margin was 26.1% in the quarter, an increase of 20 basis points from the prior year period. The increase was primarily driven by the impact of comparable restaurant sales growth which was partially offset by higher food costs.
G&A costs were 6.4% of revenue, up 40 basis points from the prior year period. The increase as a percent of revenue was primarily driven by an increase in non-cash stock-based compensation expense.
Net income for the fourth quarter of 2011 was $57.5 million, or $1.81 per diluted share, compared to $46.4 million, or $1.47 per diluted share, in the fourth quarter of 2010.
Revenue for the full year of 2011 was $2.27 billion, up 23.6% from the prior year. The growth in revenue was the result of new restaurants not in the comparable base and an 11.2% increase in comparable restaurant sales. Comparable restaurant sales growth was primarily driven by increased traffic, and to a lesser extent, by menu price increases.
For the full year, Chipotle opened 150 new restaurants including one ShopHouse, and one Chipotle in London, bringing the total restaurant count to 1,230.
Restaurant level operating margin was 26.0% for the full year of 2011, a decrease of 70 basis points from the prior year. The decrease was primarily driven by higher food costs, partially offset by the impact of leverage from higher restaurant sales.
G&A costs for the full year of 2011 were 6.6% of revenue, up 10 basis points from the prior year period primarily due to higher non-cash stock based compensation expense which was partially offset by greater sales leverage.
Net income for the full year of 2011 was $214.9 million, or $6.76 per diluted share, compared to $179.0 million, or $5.64 per diluted share, for 2010.
Our Board of Directors has approved the expenditure of up to an additional $100 million to repurchase shares of our common stock exclusive of commissions. This repurchase agreement may be modified, suspended, or discontinued at any time.
"Our accomplishments this year were truly amazing. Empowered cultures create excellent teams. These excellent teams are exciting, productive and powerful. They attract great employees and develop them to be at their very best, and they become the future leaders within our organization," commented Co-CEO Monty Moran.
For 2012, management expects the following:
Definitions
The following definitions apply to these terms as used throughout this release:
Comparable restaurant sales increases represent the change in period-over-period sales for the comparable restaurant base. A restaurant becomes comparable in its 13th full calendar month of operation.
Average restaurant sales refers to the average trailing 12-month sales for restaurants in operation for at least 12 full calendar months.
Restaurant level operating margin represents total revenue less restaurant operating costs, expressed as a percent of total revenue.
Chipotle will host a conference call to discuss the fourth quarter and full year 2011 financial results today at 4:30 PM Eastern Time. The conference call can be accessed live over the phone by dialing 1-888-466-4414 or for international callers by dialing 1-719-325-2135. A replay will be available one hour after the call and can be accessed by dialing 1-877-870-5176 or 1-858-384-5517 for international callers; the password is 7146034. The replay will be available until February 8, 2012. The call will be webcast live from the Company's website at chipotle.com under the investor relations section. An archived webcast will be available one hour after the end of the call.
Steve Ells, Founder, Chairman and Co-Chief Executive Officer, started Chipotle with the idea that food served fast did not have to be a typical fast food experience. Today, Chipotle continues to offer a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads made from fresh, high-quality raw ingredients, prepared using classic cooking methods and served in a distinctive atmosphere. Through our vision of Food With Integrity, Chipotle is seeking better food from using ingredients that are not only fresh, but that where possible are sustainably grown and naturally raised with respect for the animals, the land, and the farmers who produce the food. A similarly focused people culture, with an emphasis on identifying and empowering top performing employees, enables us to develop future leaders from within. Chipotle opened its first restaurant in 1993 and currently operates over 1,200 restaurants. For more information, visit chipotle.com.
Certain statements in this press release, including statements under the heading "Outlook" of our expected number of new restaurant openings, comparable restaurant sales increases, food inflation, and effective tax rate in 2012, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate", "believe", "could", "should", "estimate", "expect", "intend", "may", "predict", "project", "target", and similar terms and phrases, including references to assumptions, to identify forward-looking statements. The forward-looking statements in this press release are based on information available to us as of the date any such statements are made and we assume no obligation to update these forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include, but are not limited to, the following: factors that could affect our ability to achieve and manage our planned expansion, such as the availability of a sufficient number of suitable new restaurant sites and the availability of qualified employees; the uncertainty of our ability to achieve expected levels of comparable restaurant sales increases; the performance of new restaurants and their impact on existing restaurant sales; increases in the cost of food ingredients and other key supplies; the risk of food-borne illnesses and other health concerns about our food; the potential for increased labor costs or difficulty retaining qualified employees, including as a result of immigration enforcement activities; risks relating to our expansion into new markets; the impact of federal, state or local government regulations relating to our employees and the sale of food or alcoholic beverages; risks associated with our Food With Integrity strategy, including supply shortages; changes in consumer preferences, general economic conditions or consumer discretionary spending; the effect of competition in the restaurant industry; the effects of continuing economic uncertainty on our business and on our suppliers, landlords and potential developers; the impact of increasing general and administrative expenses due to higher non-cash stock-based compensation expense and other increased expenses; risks relating to litigation; risks relating to our insurance coverage and self-insurance; our dependence on key personnel; security risks associated with the acceptance of electronic payment cards; the uncertainty of our ability to protect our name, logo and other proprietary information or the reputation of our brand; the potential effects of inclement weather; risks related to the tax treatment of our separation from McDonald's; and other risk factors described from time to time in our SEC reports, including our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, all of which are available on our Web site at chipotle.com.
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Source: Chipotle Mexican Grill, Inc.
Chipotle continues to offer a focused menu of burritos, tacos, burrito bowls and salads made from fresh, high-quality raw ingredients, prepared using classic cooking methods and served in a distinctive atmosphere.