* 1st quarter EPS $1.97 vs Street view $1.93
* Same-restaurant sales up 12.7 percent
* Sees no further price increases this year
* Shares up 1 percent
April 19 (Reuters) – Chipotle Mexican Grill Inc
reported quarterly profit that beat Wall Street forecasts as
sales at established restaurants topped analysts’ views, helped
by more customer visits and last year’s menu price increases.
The upscale burrito chain, which was spun out of McDonald’s
Corp in 2006, operates in the so-called fast-casual
restaurant category. That group has won a big following lately
with diners who want higher quality food served quickly and at
prices below those of full-service restaurants.
Chipotle uses organic ingredients when possible and is one
of the restaurant industry’s best-performing names, largely due
to its ability to hold down labor costs amid blisteringly fast
growth.
The Denver-based company raised menu prices in the Pacific
region in March, but does not plan any more price increases this
year to offset higher costs for ingredients such as beef and
cheese.
First-quarter net income rose 35 percent to $62.7 million,
or $1.97 per share, at Chipotle, which competes with Jack in the
Box Inc’s Qdoba burrito chain.
Analysts, on average, were looking for a profit of $1.93 per
share, according to Thomson Reuters I/B/E/S.
First-quarter revenue rose a better-than-expected 26 percent
to $640.6 million.
Sales at restaurants open at least 13 months were up 12.7
percent, blowing past the 10.5 percent rise expected by analysts
polled by Thomson Reuters.
Chipotle repeated its forecasts for 2012 growth in sales at
established restaurants in the mid-single digit percentage range
and a similar rise in food inflation.
In April last year, the company revealed that the criminal
division of the U.S. Attorney’s office for Washington, D.C., had
opened an investigation and asked it to turn over documents
related to U.S. Immigration and Customs Enforcement audits.
The company fired hundreds of workers as a result of the ICE
audits, which boosted turnover and costs related to training new
employees. Employee turnover also can slow down service and
frustrate diners.
Chipotle’s shares doubled from $22 to $44 on their first day
of trading in 2006 and closed at $430.78 on Thursday, near
historic highs. The shares rose 1 percent to $435 in extended
trading.
