Chipotle Mexican Grill says it plans to maintain its rate of expansion in 2014 as it reports a 17.7% rise in revenue to $3.2bn (£1.9bn) in 2013, aided by an improved performance in Q4.
The company hopes to open between 180 and 195 restaurant this year after opening 185 in 2013.
Comparable restaurant sales increased 5.6% last year although restaurant level operating margin fell 50 basis points to 26.6%. Net income was $327.4m (£198.7m), an increase of 17.8%.
In the final three months of 2013, revenue growth accelerated to 20.7%, reaching $844.1m (£512.2m) in the quarter. Operating margin increased by 100 basis points to 25.6% and comparable restaurant sales were up 9.3%.
It opened 56 restaurants in the quarter, taking it global estate to 1,595.
Food costs were 33.4% of revenue for the year, an increase of 80 basis points mostly from higher salsa, meat, and dairy costs. In Q4, food costs reached 33.9% of revenue, an increase of 40 basis points. The firm said this was driven mostly by higher avocado costs and to a lesser extent from tomato and corn salsa costs, partially offset by lower dairy and steak costs.
Steve Ells, founder, chairman and co-chief executive of Chipotle, said: “We are very proud of our accomplishments during 2013. Over the past 20 years, we have created a very unique and special restaurant company.
“Chipotle is a place that appeals to a diverse customer base throughout the country and beyond. We offer our customers a range of flavours from a focused selection of beautiful, top-quality ingredients that are expertly prepared by a passionate team of extraordinary people. Our focus on our unique people and food cultures has created an impressive demand for a restaurant experience that is redefining fast food for the better.”
