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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Chipotle Announces Q2 FY 2022 Financial Results

07/31/2022

In a July 26th release, Chipotle Mexican Grill (CMG) posted financial results for the second quarter of fiscal 2022. This upscale food company competes at the intersection of QSRs and casual dining, offering a limited menu of Mexican-themed dishes assembled cafeteria style. The Company experiences the same pressures of increased cost of ingredients, labor and packaging as competitors in an environment still restrained by COVID and impacted by inflation.

 

Same-store sales increased by 10.1 percent for the most recent quarter compared to Q2 2021. In-restaurant sales were up 35.9 percent Digital orders comprised 39.0 percent of food and beverage sales.

 

For the 2nd Quarter of FY 2022 ending June 30th 2022, net income was $259.9 million on total revenue of $2,213 million.  Comparable figures for the 2nd quarter of fiscal 2022 ending June 30th 2021 were net income of $187.9 million on total revenue of $1,869 million. Diluted EPS increased 40.4 percent from $6.60 for the 2nd quarter of fiscal 2021 to $9.25 for the most recent quarter.

 

The Company provided guidance for Q3 comprising a mid to high single-digit increase in sales growth. Restaurant openings will attain a range of 235 to 250 units during FY 2022.

 

Chipotle operates approximately 2,000 stores in the U.S., Canada, U.K., France and Germany with all locations company-owned.

 

In commenting on the quarter, Brian Niccol Chairman and CEO stated We are pleased with our second quarter performance during a period of inflation and consumer uncertainty," He added,  "Pricing power and value proposition remain strong as our culinary and food with integrity commitment continues to be a key point of differentiation."

 

On June 30th, CMG posted assets of $6,545 million, against lease obligations of $3,393million but with no long-term debt. The Company had an intraday market capitalization of $43,430 million on July 29th. CMG trades with a forward P/E of 47.6 and has ranged over a 52-week period from $1,196 to $1,958 with a 50-day moving average of $1,328.  Twelve-month trailing operating margin was 11.1 percent and profit margin 9.3 percent.  Return on assets over the past twelve months was 8.8 percent with 34.9 percent on equity. At close of trading on July 26th pre-release, CMG was priced at $1,315. On July 27th CMG opened at $1,495.


 
Copyright © 2022 Simon M. Shane