Share via Email

* Email To: (Separate multiple addresses with a semicolon)
* Your Name:
* Email From: (Your IP Address is
* Email Subject: (personalize your subject)

Email Content: Poultry Industry News, Comments and more by Simon M. Shane

Chipotle Posts Increase in Same-Store Sales


Chipotle posted a 4.4 percent increase in same-store sales for the recently completed third quarter. The improvement is attributed to the efforts of CEO Brian Niccol who assumed leadership of the company in early 2018. During the past year, Chipotle shares increased almost 50 percent to close at $455 on January 4th 2019. The 52-week range is $248 to $531. On August 5th 2015, Chipotle shares peaked at $758, preceding a series of foodborne infections including Salmonellosis, E.coli and norovirus impacting stores coast to coast. The problem was exacerbated by inept public relations and crisis management. Subsequent disclosures identified deficiencies in training, supervision and the inherent vulnerability of the menu items under the management of Founder and then CEO, Steve Ells.

The success of Chipotle under Brian Niccol is attributed to introduction of digital orders that increased 44 percent over Q3 of FY 2017, representing 11 percent of sales for the third quarter of FY 2018 ending September 30th 2018. Other innovations included revamping of the menu, improving take-out service, introduction of drive-up windows, extensive promotion, and the absence of any negative publicity associated with recent outbreaks of foodborne infection.

For the most recent third quarter CMG earned $38 million ($61 million adjusted for tax and restructuring costs) on revenue of $1.2 billion. Twelve month trailing return on capital is 10.4 percent and 13.3 percent on equity.

Copyright 2019 Simon M. Shane