Chipotle reports 13.9% increase in revenues to $1.3bn for Q1 2019

25th April 2019 (Last Updated April 25th, 2019 16:48)

Chipotle Mexican Grill has reported revenues of $1.3bn for the first quarter (Q1) ending 31 March this year, a 13.9% increase from the same period last year.

Chipotle reports 13.9% increase in revenues to $1.3bn for Q1 2019
Chipotle currently owns and operates over 2,500 restaurants globally. Credit: Aranami.

Chipotle Mexican Grill has reported revenues of $1.3bn for the first quarter of 2019 (Q1) ending March 31 showing a 13.9% increase from the same period last year.

The growth was reportedly driven by new restaurant openings and a 9.9% increase in comparable restaurant sales.

Chipotle has 2,504 restaurants after opening 15 new outlets, as well as closing two properties, during the first quarter.

The restaurant also reported a net income of $88.13m or $3.13 per diluted share, compared to net income of $59.4m or $2.13 per diluted share for the same period in the previous year.

“We connect with guests through culturally relevant marketing focused on Chipotle’s great taste and real ingredients, and provide more convenient access with less friction, they respond enthusiastically.”

Restaurant level operating margin stood at 21%, a rise from 19.5% last year.

The increase was driven primarily by comparable restaurant sales increases and lower repair and maintenance expense. It was partially offset by wage inflation, increased marketing and promotional cost, and delivery expense associated with increased delivery sales.

Chipotle CEO Brian Niccol said: “The on-going improvement in each of our key operating metrics over the past few quarters gives us confidence that our mission to win today and cultivate the future, is resonating.

“This is the fifth consecutive quarter of accelerating comps, which reinforces our view that when we connect with guests through culturally relevant marketing focused on Chipotle’s great taste and real ingredients, and provide more convenient access with less friction, they respond enthusiastically.”

In addition, the fast food chain anticipates opening 140 to 155 new restaurants during this year.