360° Coverage : Chipotle Continues Rapid Ascent Despite Slowing Profits

2 Updates
Chipotle Continues Rapid Ascent Despite Slowing Profits
Photo Credit: Forbes Business

Chipotle Continues Rapid Ascent Despite Slowing Profits

Apr 17 2014, 10:35am CDT | by

If Chipotle is the Cinderella of the restaurant business, the clock certainly hasn’t struck midnight yet — but it may be getting nearer. The fast-casual restaurant chain increased revenue again in...

Filed under: news

 
 
 

23 weeks ago

Chipotle Continues Rapid Ascent Despite Slowing Profits

Apr 17 2014, 10:35am CDT | by

If Chipotle is the Cinderella of the restaurant business, the clock certainly hasn’t struck midnight yet — but it may be getting nearer.

The fast-casual restaurant chain increased revenue again in the first quarter, up 24% to $904 million. That growth came from both new locations (44 of them), and a 13% gain in comparable store sales — proving that Chipotle’s fairy tale rise is still underway.

However, there were warning signs. Chipotle’s net income growth was slower than expected — only 8.5%. Wall Street expected earnings per share of $2.86, while Chipotle only delivered $2.65. Food costs, more than 34% of revenue, grew due to higher commodity costs on beef, avocado, and cheese. That drove down restaurant-level operating margin to just under 26%.

Investors seem optimistic for now. In Thursday morning trading, Chipotle shares were up 4.91% as of 11:00am EDT. The stock is up 70% since a year ago and more than 600% over the last 5 years.

“We are delighted that more and more people are choosing to visit our restaurants every day allowing us to deliver double digit comps during the quarter. Our food culture has always been a defining characteristic of Chipotle and continues to set us apart from other restaurants. We are confident that our special food culture will continue to attract more customers to visit Chipotle as customers better understand and connect how natural and high quality ingredients that are freshly prepared result in better tasting food,” founder, chairman, and co-CEO Steve Ells said in a statement.

Chipotle’s success has led to wide-ranging search for the next fast-casual chain to blow up. Zoe’s Kitchen, which held its initial public offering last week, is the latest to test the market’s appetite.

Follow Brian on Facebook and Twitter.

10 Top Leaders in Fast-Casual Cuisine

 
Update
2

4 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workfor ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

4 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17 ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

China warns of dengue risk during National Day holidays
Beijing, Sep 29 (IANS) The Chinese Center for Disease Control and Prevention (CDC) Monday warned public to stay alert about dengue exposure during the week-long National Day holiday beginning Oct 1.
 
 
Play after school makes the minds of kids sharper
New York, Sep 29 (IANS) If your child cannot wait to play after school, better not to restrict him, a study suggests.
 
 
OPEC daily basket price closes lower
Vienna, Sep 29 (IANS/WAM) The basket of 12 crude oils of the Organization of Petroleum Exporting Countries (OPEC) closed at $94.13 a barrel Friday, compared to $94.25 a barrel last Thursday, the OPEC Secretariat said.
 
 
Scorpion venom to fight brain cancer
Washington, Sep 29 (IANS) Scientists have received approval from the US Food and Drug Administration (FDA) to use "Tumour Paint", a product derived from scorpion venom for study in human trials in the US, in an effort to treat people suffering from brain cancer.
 
 
 

Latest from the Network

Black Friday Schedule 2014 Released
Black Friday 2014 is in 60 days, but the first Black Friday sales will already start in 1 month. Over the last couple of years, Black Friday has become a month-long sales event with multiple special events. I4U News has...
Read more on Black Friday Countdown
 
Asian Games: Discus thrower Seema Punia wins gold
Incheon, Sep 29 (IANS) India's discus thrower Seema Punia won the gold medal while her compatriot Krishna Poonia finished fourth in the 17th Asian Games at the Incheon Asiad Main Stadium here Monday. Chinese Xiaoxin...
Read more on Sport Balla
 
Brad Pitt believes in institution of marriage
Los Angeles, Sep 29 (IANS) Actor Brad Pitt, who exchanged vows with his long-term partner and actress Angelina Jolie in August, says marriage is more than just a title. The 50-year-old actor shared his views on...
Read more on Celebrity Balla
 
Clooney, Alamuddin to make things official Monday
Rome, Sep 29 (IANS) Newly married couple George Clooney and British human rights lawyer Amal Alamuddin will officialise their marriage in Venice today. The couple, who wed Saturday at a private star-studded ceremony,...
Read more on Celebrity Balla
 
China warns of dengue risk during National Day holidays
Beijing, Sep 29 (IANS) The Chinese Center for Disease Control and Prevention (CDC) Monday warned public to stay alert about dengue exposure during the week-long National Day holiday beginning Oct 1. A total of 12,...
Read more on Business Balla
 
Robot to figure out if Thai cuisine is genuine or not
Bangkok, Sep 29 (IANS) The Thai government is set to unveil a robotic taster that will determine if the food you have ordered anywhere in the world at a Thai restaurant is genuine or not. The "e-delicious" machine...
Read more on Politics Balla
 
Asian Games: Bajrang wins silver, Narsingh bronze
Incheon, Sep 29 (IANS) Indian wrestler Bajrang had to remain content with the silver medal after losing his final bout while his compatriot Narsingh Pancham Yadav clinched the bronze in the 17th Asian Games at the...
Read more on Sport Balla
 
Modi US visit: Three Indian cities to be named for smart cities project
Washington/New Delhi, Sep 29 (IANS) Three Indian cities are in line to be adopted for the government's "smart cities" project by way of technology and infrastructure upgrade during Indian Prime Minister Narendra Modi's...
Read more on Politics Balla
 
Play after school makes the minds of kids sharper
New York, Sep 29 (IANS) If your child cannot wait to play after school, better not to restrict him, a study suggests. Moderate-to-vigorous physical activity for at least 60 minutes a day after school saw substantial...
Read more on Celebrity Balla
 
14 percent Britons have partners they have never met!
London, Sep 29 (IANS) In an indication of how much the virtual world has become part of our real lives, a survey has found that one in seven people in Britain has relationship with people he/she has only interacted...
Read more on Celebrity Balla