Wednesday, 21st February, 2018
Sales grow by 6.4% vs last year for Chipotle Mexican Grill
In their fourth quarter earnings results the brand has revealed a revenue increase of 14.7% to $4.5 billion, meanwhile comparable restaurant sales have increased by 6.4%.
“During 2017, we have made considerable changes around leadership, operations, and long-term planning and it is clear that, while there is still work to be done, we are starting to see some success,” said Steve Ells, founder, chairman and chief executive officer.
He continued; “2018 marks the 25th anniversary of Chipotle, and I am encouraged by the dedication all of our guests and employees have to this brand. Our focus this year will be to continue perfecting the dining experience, enhancing the guest experience through innovations in digital and catering, and reinvesting in our restaurants.
“We are making good progress on our search for a new CEO who can improve execution, drive sales and enable Chipotle to realize our enormous potential.”
Additionally, revenue over the fourth quarter increased by 7.3% to $1.1 billion while comparable restaurant sales increased by 0.9% for the quarter.
For 2018, Chipotle is expecting the following:
• Comparable restaurant sales increases in the low single digits
• 130 - 150 new restaurant openings
They also stated that an estimated effective tax rate for the full year of between 30.0% and 31.0%, which includes an underlying effective tax rate of about 27% to 28%, plus the effect of prior year employee equity plans which may either expire without vesting (resulting in no tax deduction), or vest at lower realized values (resulting in a lower tax deduction).
Additionally they revealed that while they expect future underlying effective tax rates in the 27% to 28% range, these rates will be further impacted by volatility due to accounting for taxes associated with previous and future stock-based compensation awards as well as a deferred tax asset related to market-based performance stock awards which may not vest.