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Key Analysis of Chipotle Mexican Grill’s 2Q15 Earnings

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Chipotle’s 2Q15 earnings

Chipotle Mexican Grill (CMG) reported its 2Q15 earnings on July 21 after the market closed. The company reported an earnings per share (or EPS) of $4.45, which beat the Wall Street analysts’ estimate of $4.43. This was an increase of 27.1%, compared with the corresponding quarter a year ago in 2014.

Year-to-date, the stock is up 2%, and the broader Consumer Discretionary Select Sector SPDR ETF (XLY) is up 10% year-to-date.

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Series overview

In this series, we will discuss the key developments at Chipotle Mexican Grill, especially the key metric same-store sales growth, and how the company’s valuation could be impacted.

We will also discuss other key financial metrics and what they mean for investors going forward.

Company overview

Chipotle Mexican Grill (CMG) is a limited-service restaurant operating more than 1,800 fast-casual restaurants. Most of the restaurants are in the United States, with a few in Canada, the United Kingdom, Germany, and France. Chipotle has more than 45,000 employees.

Chipotle also forms about 1% of the Consumer Discretionary Select Sector SPDR ETF (XLY). XLY also holds 4% of McDonald’s (MCD), 1.5% of Yum! Brands (YUM), and 3% of Starbucks (SBUX).

Most of the company’s restaurants carry the Chipotle Mexican Grill brand, but Chipotle also operates 11 ShopHouse Southeast Asian Kitchen restaurants and two Pizzeria Locale restaurants. It operates these two new concepts under the same fast-casual format as Chipotle Mexican Grill.

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