Chipotle’s earnings per share
Chipotle Mexican Grill released its 1Q15 earnings on April 21, 2015. The company reported its adjusted earnings per share (or EPS) of $3.88, which increased an impressive 47%, compared with an EPS of $2.64 in the corresponding quarter in 2014.
Chipotle Mexican Grill (CMG) operates its restaurants using a fast-casual format, serving burritos, burrito bowls, tacos, salads, sides such as chips and guacamole, and beverages. The company also operates eight ShopHouse Southeast Asian Kitchen locations and two Pizzeria Locale restaurants under the same fast-casual format. As of March 31, the company operated 1,831 restaurants.
To learn more about the restaurant sector, please read An in-depth overview of the US restaurant industry.
Investors who would like access to the restaurant industry can invest in ETFs such as the Consumer Discretionary SPDR ETF (XLY), which includes McDonald’s (MCD), Yum! Brands (YUM), Chipotle Mexican Grill (CMG), and Starbucks (SBUX). XLY holds ~37% of the retail sector, which includes restaurants. To learn more about how macro indicators affect Chipotle, please read Analyzing Key Restaurant Indicators for February.
Overview of this series
To understand growth or decline in EPS, we will look at revenue drivers, including same-store sales growth and unit growth. We will also look at Chiptole Mexican Grill’s earnings, strategic changes, and tactics that the company’s management discussed during its 1Q15 earnings call.