Chipotle Mexican Grill Inc. said today its first-quarter profit more than tripled and credited publicity over its initial public offering, mild weather and better execution at its restaurants.
The “fast-casual” burrito, taco and salad chain reported net income of $8 million, or 26 cents per share, for the quarter ending March 31, up from $2.6 million, or 10 cents per share, in the same quarter a year ago.
The consensus estimate of analysts surveyed by Thomson Financial was 12 cents per share.
Revenues rose 40 percent to $187 million from $133.4 million a year earlier, as Chipotle opened 15 company-owned restaurants during the quarter. The chain opened 77 restaurants from March 31, 2005, to March 31, 2006.
Revenue for restaurants open at least a year rose 19.7 percent from the first quarter 2005, the Denver-based company said. It cited a sharp increase in the number of transactions, as well as higher menu prices.
Chief financial and development officer Jack Hartung said Chipotle was well-positioned to open 80 to 90 new restaurants this year.
“We credit improving restaurant level execution, IPO-related publicity and mild weather for our performance,” said Chairman and Chief Executive Steve Ells.
Chipotle forecast same-store sales growth in the high-single digits in 2006, with quarterly increases decelerating through the year.
Chipotle parent McDonald’s Corp. spun off a stake in the company in January. The stock has more than doubled in value since its $22 debut on Jan. 26. Chipotle reported last month that McDonald’s had about a 65 percent interest in the company as of March 31.
Chipotle said it expected $1 million in one-time fees in the second quarter associated with McDonald’s previously announced plan to sell off its Chipotle shares.
Shares of Chipotle rose $2.37, or 4.1 percent, to close at $59.27 on the New York Stock Exchange before the earnings report was released. Its shares rose $3.73, or 6.3 percent, to $63 in after-hours trading.
