Let’s digest these numbers, shall we?
The company missed on both top and bottom lines. Their revenues plunged by 16% over last year. Comps were down 23% v expectations of 20%. Food costs increased 110bps. Yet, in spite of all this, the company continues to leverage into a bad business model by opening more stores. They’ll open another 230 stores for all of 2016, all the while people ignore their shops as denizens of poison.
- Reports Q2 (Jun) earnings of $0.87 per share, $0.03 worse than the Capital IQ Consensus of $0.90; revenues fell 16.6% year/year to $998.4 mln vs the $1.05 bln Capital IQ Consensus.
- Chipotle Mexican Grill reports Q2 comps of -23.6% vs -20.5% ests vs +4.3% last year.
- Q2 Restaurant level operating margin was 15.5%, a decrease from 28.0%. Food costs were 34.2% of revenue, an increase of 110 basis points as compared to
the second quarter of 2015. - Guidance: For FY16 management expects the following: 220 – 235 new restaurant openings; An effective full year tax rate of ~38.6%
The stock is actually higher in the after hours, led by crazy people. I suspect analyst will not be as kind in the morning.
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I hope this means they send me more coupons.
What the fook is peoples’ problem?? You only pay for the burrito, and get the e-coli for free. You’d think people would be bustin the doors down for a deal like that…