Chipotle has reported a 17.3% rise in comparable restaurant sales in the second quarter of 2014, which the group said was one of its strongest comparative periods as a public company.
Q2 revenues grew 28.6% to $1.05bn (£0.6bn) and net income was $110.3m (£64.6m), an increase of 25.5%, as it opened 45 new restaurants in the period. Restaurant level operating margin was 27.3%, a decrease of 30 basis points, and diluted earnings per share was $3.50 (£2), an increase of 24.1%.
Chipotle said: “Comparable restaurant sales growth was driven primarily by increased traffic and to a lesser extent from an increase in average check, which includes the benefit of the nationwide menu price increases that were fully rolled out by the end of the quarter.”
It represents an acceleration in the performance second quarter. Across the half year, comparable sales were up 15.5% on revenue up 26.6% to $1.95bn (£1.14bn) - it opened 89 new restaurants during the six months.
For 2014, the firm, whose global estate totalled 1,681 at the period end, expects to open between 180 and 195 new restaurants and have comparable restaurant sales increases in the “mid-teens”. It also expects an effective full year tax rate of c39.1%.
“We’re pleased that we continued to drive excellent results in the second quarter, including one of our strongest sales comps as a public company,” said Steve Ells, founder, chairman and co-chief executive of Chipotle.
“These extraordinary results are made possible by our special food culture, innovative people culture, and strong business model that are not only creating significant shareholder value, but also helping us realise our vision to change the way people think about and eat fast food,”
Monty Moran, fellow co-chief executive, said: “Empowered teams of top performers can accomplish amazing things. Our restaurateurs form the foundation of Chipotle’s culture, setting a standard for everyone else to follow. We are deeply committed to these leaders and the unique people culture they are building in their restaurants, which not only helps provide our guests with an exceptional dining experience, but also enables us to deliver great results to our shareholders.”
