Chipotle (CMG) will report Q1 earnings this afternoon (16:05 last quarter) with a conference call to follow at 4:30 PM ET.

Current Cap IQ consensus estimates Q1 EPS of $1.56 (-3% Y/Y) on revs of $1.147 bln (+4%) with comps up 1.3% vs. +1-2% guidance before impact of the Chiptopia rewards program.

Last quarter, the company missed comps for the third quarter in a row. 

Comp sales over the last year: Q1 +17.8%, Q2 +8.1%, Q3 +1%, Q4 +0.9%

With a $9.5 bln market cap, CMG trades at a P/E of 55x compared to some peers such as (YUM 22x), (MCD 24.51x), and (LOCO 44x). Note CMG does not franchise its restaurants.

13% of the 27 mln share float is sold short.

TECHS:

RESULTS:

Chipotle Mexican Grill beats by $0.57, reports revs in-line; comps +2.2% vs 1.3% estimate  

  • Reports Q1 (Mar) earnings of $2.13 per share, $0.57 better thanthe Capital IQ Consensus of $1.56; revenues rose 7.4% year/year to $1.15 bln vs the $1.15 bln Capital IQ Consensus
  • Comparable restaurant sales increased 2.2% (net of 50 basis points related to Chiptopia revenue deferral from 2017)  
  • Restaurant level operating margin increased to 19.5% from 17.7%
  • Board of Directors has also approved the investment of up to an additional $100 million, exclusive of commissions, to repurchase shares of our common stock.
  • Comparable restaurant sales increases in the low-single digits  
  • 130 to 150 new restaurant openings