uploads///CMG Revenues

Chipotle May Report Higher Revenue YoY



Revenue from company-operated stores

Chipotle Mexican Grill (CMG) earns revenue from the company-operated stores. Restaurants like Panera Bread (PNRA), McDonald’s (MCD), Yum! Brands (YUM), and those included in the Consumer Discretionary Select Sector SPDR ETF (XLY), earn revenue from company-operated as well as franchise stores.

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Analysts expect higher YoY revenue

Wall Street analysts estimate that Chipotle will have $1,074 million in revenue. Sequentially, this is down 1% from its 3Q14 revenue of $1,084 million. However, it’s a 27% increase in year-over-year, or YoY, revenue of $844 million in the same quarter in 2013. Higher sales estimates reflect the continuing strength in the fast-casual restaurant segment.

A fast-casual restaurant is a mix of two previously successful restaurant concepts—the fast food restaurant and casual dining restaurant. Chipotle adopted the idea of fast food preparation and service from the fast food restaurants. It offers quality ingredients and freshly prepared food from the casual dining restaurants.

Other restaurants

Wall Street analysts estimate that Panera Bread will report revenue of $675 million when it releases its earnings. Jack In The Box (JACK), owns Qdoba Mexican Grill. It’s expected to report $458 million in sales. Yum! Brands operates KFC (Kentucky Fried Chicken), Taco Bell, and Pizza Hut. It’s expected to report $3.94 million in sales—or a 5.5% YoY decline in sales.

McDonald’s and Yum! Brands are both part of the Consumer Discretionary Select Sector SPDR ETF (XLY).

McDonald’s reported a YoY decline in revenue of 7.3% or $6,572 billion.

In the next part of this series, we’ll look at Chipotle’s same-store sales expectations.


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