Boston, MA 07/23/2013 (wallstreetpr) – Chipotle Mexican Grill Inc (NYSE:CMG) has reported its earnings which has shown a 7.6% annual increase in the net income with an earnings per share increase of 10.2%. Over this same time, the revenue of the company has increased by 18.6%. Chipotle Mexican Grill attributed that this increase in the revenue was due to the opening of as many as 92 fresh restaurants right from the beginning of the year. The sales in the restaurants were also increased by 5.5% thereby contributing to the success of the company.
Following this, there was a question of increase in the prices of the shares. However, the idea of increasing the prices was halted for the following two quarters to the minimum. Per analysts at Piper Jaffray, the 12-month target of the price has been increased from $ 360 to $ 450 while Joseph Buckley, who is the analyst of Bank of America Merrill Lynch, has also increased the price target from $ 420 to $450. During the last trading session the shares of the company were decreased by 1.75%, closed at $401.80.
The second quarter 2013 results of the company have many highlights over the second quarter 2012 results. The revenue of the company has been increased by 18.2% to reach $ 816.8 million when compared to second quarter 2012. The restaurant sales have been increased by 5.5% from second quarter 2012. The net income was shown as $ 87.9 million which shows an increase of 7.6%. The operating margin of the restaurants was 27.6%, which shows a decline of 160 points in basis when compared to second quarter 2012.
The growth of the revenue was resulted from the opening of the new restaurants which are not in the comparable base. The growth in the restaurant sales was attributed to the increase observed in the traffic in addition to the benefit of trading for extra one day during the quarter as compared with the Q2 2012.
