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SEC Filings

10-Q
CHIPOTLE MEXICAN GRILL INC filed this Form 10-Q on 07/26/2017
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Restaurant Activity

The following table details restaurant unit data for the periods indicated:



 

 

 

 

 

 

 



 

 

 

 

 

 

 



Three months ended June 30,

 

Six months ended June 30,



2017

 

2016

 

2017

 

2016

Beginning of period

2,291 

 

2,066 

 

2,250 

 

2,010 

Openings

50 

 

58 

 

107 

 

116 

Relocations/closures

(2)

 

 -

 

(3)

 

(2)

ShopHouse closures

 -

 

 -

 

(15)

 

 -

Total restaurants at end of period

2,339 

 

2,124 

 

2,339 

 

2,124 

Results of Operations

Our results of operations as a percentage of revenue and period-over-period changes are discussed in the following section. As our business grows and we open more restaurants and hire more employees, our aggregate restaurant operating costs and depreciation and amortization generally increase.

Revenue





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three months ended June 30,

 

% increase/

 

Six months ended June 30,

 

% increase/



2017

 

2016

 

(decrease)

 

2017

 

2016

 

(decrease)



(dollars in millions)

 

 

 

(dollars in millions)

 

 

Revenue

$

1,169.4 

 

$

998.4 

 

17.1% 

 

$

2,238.2 

 

$

1,832.8 

 

22.1% 

Average restaurant sales

$

1.957 

 

$

2.067 

 

(5.3%)

 

$

1.957 

 

$

2.067 

 

(5.3%)

Comparable restaurant sales increases (decreases)

 

8.1% 

 

 

(23.6%)

 

 

 

 

12.5% 

 

 

(26.5%)

 

 

Number of restaurants as of the end of the period

 

2,339 

 

 

2,124 

 

10.1% 

 

 

2,339 

 

 

2,124 

 

10.1% 

Number of restaurants opened in the period

 

50 

 

 

58 

 

 

 

 

107 

 

 

116 

 

 



The significant factors contributing to the increase in revenue were new restaurant openings and comparable restaurant sales increases. For the three months ended June 30, 2017, revenue from restaurants not yet in the comparable base contributed $94.8 million, of which $33.8 million was attributable to restaurants opened in 2017, and comparable restaurant sales increased $76.1 million. For the six months ended June 30, 2017, comparable restaurant sales increased $217.2 million, while revenue from restaurants not yet in the comparable restaurant base contributed $182.6 million, of which $45.0 million was attributable to restaurants opened in 2017.  The increase in comparable restaurant sales was attributable to an increase in the number of transactions in our restaurants, and an increase in the average check as a result of reduction in promotional activity. For the six months ended June 30, 2017, comparable restaurant sales included the benefit of 0.2% related to previously deferred revenue that was recognized in the first quarter.

Food, Beverage and Packaging Costs



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three months ended June 30,

 

%

 

Six months ended June 30,

 

 



2017

 

2016

 

increase

 

2017

 

2016

 

% increase



(dollars in millions)

 

 

 

(dollars in millions)

 

 

Food, beverage and packaging

$

399.2 

 

$

341.9 

 

16.7% 

 

$

760.9 

 

$

636.1 

 

19.6% 

As a percentage of revenue

 

34.1% 

 

 

34.2% 

 

 

 

 

34.0% 

 

 

34.7% 

 

 





Food, beverage and packaging costs decreased as a percentage of revenue for the three months ended June 30, 2017. Higher avocado prices were offset by lower expenses from bringing the preparation of lettuce and bell peppers back into our restaurants after using pre-cut produce during portions of 2016, as well as the benefit of menu price increases in select restaurants during the second quarter of 2017, and a decrease in paper usage and costs. Food, beverage and packaging costs decreased as a percentage of revenue for the six months ended June 30, 2017, primarily due to a decrease in expense for pre-cut produce that was used during portions of 2016, decreased food testing and waste costs, and to a lesser extent, the benefit of the menu price increase in the second quarter, partially offset by increased avocado costs. We expect that food, beverage, and packaging costs as a percent of revenue for the full year 2017 will be lower than the first half of 2017 if avocado prices continue to decline.

10

 


 

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