Swot Analysis Chipotle Mexican Grill
Chipotle Mexican Grill
Chipotle had a very positive second quarter result announced in July. The fast food restaurant chain reported total revenue of $ 1.2 billion that is 14.1 % better than that reported for the second quarter of 2014. This phenomenal growth in revenue has the opening of 48 new restaurants during the second quarter behind it. The total restaurant count for Chipotle now stands at 1,878. On not considering the new restaurants that were not present till the end of the second quarter of 2014, we get the “comparable restaurant” figures. The comparable restaurant sales grew by 4.3 % during the recently concluded quarter.
There was an increase in menu prices too, which has impacted the food cost as a percentage of revenue favourably. Food cost improved by 150 basis points to come down to 33.1 % of revenue. Similarly, restaurant level operating margin increased 70 basis points on a year over year basis. The margin was 28 % for the most recent quarter. The primary reason behind this increase was a favourable sales leverage despite increased labour costs as a percentage of revenue. All in all, the company managed to decrease its overall cost including General and Administrative (G&A) expenses and improve the profit margins at every level. …show more content…
$ 4.45 per diluted share which means a 27 % increase over last 2Q’s net income of $ 110.3 or $ 3.50 per share. The reported EPS also beat the analysts’ estimate of $ 4.43 per share. Up to the end of June this year, Chipotle Mexican Grill had successfully opened a total of 97 new restaurants. For the full year, the company is positive of reaching or surpassing the top end of its full year target range that is 190 to 205. With that the fast food chain must easily achieve a similar double digit growth in sales for full 2015. But for the comparable restaurant sales, it has a low-to-mid single digit percentage growth range in mind.
Food and People
Chipotle had a very positive second quarter result announced in July. The fast food restaurant chain reported total revenue of $ 1.2 billion that is 14.1 % better than that reported for the second quarter of 2014. This phenomenal growth in revenue has the opening of 48 new restaurants during the second quarter behind it. The total restaurant count for Chipotle now stands at 1,878. On not considering the new restaurants that were not present till the end of the second quarter of 2014, we get the “comparable restaurant” figures. The comparable restaurant sales grew by 4.3 % during the recently concluded quarter.
There was an increase in menu prices too, which has impacted the food cost as a percentage of revenue favourably. Food cost improved by 150 basis points to come down to 33.1 % of revenue. Similarly, restaurant level operating margin increased 70 basis points on a year over year basis. The margin was 28 % for the most recent quarter. The primary reason behind this increase was a favourable sales leverage despite increased labour costs as a percentage of revenue. All in all, the company managed to decrease its overall cost including General and Administrative (G&A) expenses and improve the profit margins at every level. …show more content…
$ 4.45 per diluted share which means a 27 % increase over last 2Q’s net income of $ 110.3 or $ 3.50 per share. The reported EPS also beat the analysts’ estimate of $ 4.43 per share. Up to the end of June this year, Chipotle Mexican Grill had successfully opened a total of 97 new restaurants. For the full year, the company is positive of reaching or surpassing the top end of its full year target range that is 190 to 205. With that the fast food chain must easily achieve a similar double digit growth in sales for full 2015. But for the comparable restaurant sales, it has a low-to-mid single digit percentage growth range in mind.
Food and People