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Mar 31, 2021
Chipotle Q1 2021 Earnings Report
Chipotle's first quarter results were announced, featuring a revenue increase of 23.4% and a comparable restaurant sales increase of 17.2%.
Key Takeaways
Chipotle reported strong first quarter results with a 23.4% increase in revenue to $1.7 billion and a 17.2% increase in comparable restaurant sales. Digital sales grew significantly, and restaurant level operating margin expanded.
Revenue increased by 23.4% to $1.7 billion.
Comparable restaurant sales increased by 17.2%.
Digital sales grew 133.9% and accounted for 50.1% of sales.
Restaurant level operating margin was 22.3%, an increase of 470 basis points.
Chipotle
Chipotle
Forward Guidance
Chipotle is not providing fiscal 2021 comparable restaurant sales growth guidance due to the on-going uncertainty surrounding the future impact of COVID-19. They anticipate around 200 new restaurant openings and an estimated effective full year tax rate between 25% and 27%.
Positive Outlook
- New restaurant openings are expected to be around 200.
- Company maintains a strong financial position with nearly $1.2 billion in cash, investments and restricted cash, and no debt.
- Access to a recently refinanced $500 million untapped credit facility.
- Strategic investments in people, business, and communities will be made.
- New menu items and effective marketing contributed to revenue growth.
Challenges Ahead
- There is on-going uncertainty surrounding the future impact of COVID-19.
- Comparable restaurant sales growth guidance is not provided for fiscal year 2021.
- Assumes minimal construction and permit delays related to COVID-19 for new restaurant openings.
- Increased delivery expense and wage inflation.
- Elevated excess tax benefits related to option exercises and equity vesting.