NEWPORT BEACH, Calf., Oct. 21, 2020 /PRNewswire/ — Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its third quarter ended September 30, 2020.
Third quarter highlights, which incorporate the impact of COVID-19, year over year:
- Revenue increased 14.1% to $1.6 billion
- Comparable restaurant sales increased 8.3%
- Digital sales grew 202.5% and accounted for 48.8% of sales for the quarter
- Restaurant level operating margin was 19.5%, a decrease of 1.3%
- Diluted earnings per share was $2.82, net of a $0.94 after-tax impact from expenses related to certain legal proceedings, restaurant asset impairment and closure costs, as well as corporate restructuring and other adjustments, an 18.7% decrease from $3.47. Adjusted diluted earnings per share excluding these charges was $3.76, a 1.6% decrease from $3.821
- Opened 44 new restaurants and closed three restaurants during the quarter; and about 10 restaurants remain temporarily closed because of COVID-19, mainly inside malls and shopping centers
1 Adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures. Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release.
“I want to thank and acknowledge the incredible Chipotle team members who remain focused on great execution and on advancing our purpose of Cultivating a Better World as demonstrated by our outstanding third quarter results,” said Brian Niccol, Chairman and CEO, Chipotle. “I have never been more confident that Chipotle is a powerful brand committed to fostering a culture that values and champions our diversity, while leveraging the individual talents of all team members. As a result of a strong brand, committed employees, and broad financial strength, we remain excited about Chipotle’s powerful economic model and our long-term potential.”
COVID-19 and Liquidity Update:
The health and well-being of our employees and guests continues to be our top priority. We are benefitting from investments made a few years ago including advanced air filtration systems, sanitizers throughout the restaurant, wellness protocols, and improved handwashing. In addition, we are closely following the recommendations of the CDC and local health departments and have implemented social distancing, wearing face masks, a tamper evident packaging seal for all digital orders, as well as creating the steward role to sanitize high-traffic areas. Collectively, these efforts have made the pivot to enhanced COVID-19 safety protocols much less complicated and give our employees and guests confidence that Chipotle remains steadfast in our commitment to keep them safe as we re-open restaurants for in-restaurant dining.
As of September 30, 2020, Chipotle continues to maintain a strong financial position with $1.1 billion in cash, investments and restricted cash, and no debt, along with a $600 million untapped credit facility with which to continue to navigate this crisis. This financial position improved sequentially from $934.6 million in cash, short-term investments and restricted cash, as of June 30, 2020. Our financial strength gives us the opportunity to make on-going strategic investments in our people, business, and communities, which we believe will benefit us for years to come. At the same time, our team remains focused on reducing non-essential controllable costs and judiciously spending on return generating projects to preserve liquidity.
DALLAS, Oct. 20, 2020 /PRNewswire/ — Smoothie King reinforced its position as the leader in the smoothie category during the third quarter of 2020, experiencing a strong 10.4% franchise-sales increase year-over-year. Smoothie King also opened 22 more stores in the United States and another 62 internationally, totaling 84 new stores for the quarter and 195 new-store openings year-to-date. The franchise projects another 27 store openings domestically before the end of the year for an annual total of 75 new U.S. locations.
Smoothie King has welcomed 13 new franchisees this year and signed 223 global store commitments to date – 75 of which are domestic. The franchise expects a total of around 300 new commitments by the end of 2020.
“A big reason why people want to join and reinvest in our system is because they feel connected to our mission and vision,” said CEO Wan Kim. “Our growth is validation of both that brand connection as well as the strength of our franchise model. We inspire our guests to live healthy and active lifestyles with better-for-you smoothies that serve their individual purpose, and our franchisees understand and see how that guest-centric commitment translates into business success. It’s what makes us the industry leader and will continue to separate us from others out there.”
Smoothie King – known globally as the most purpose-driven, lifestyle smoothie brand – maintained its development momentum thanks to its sustained focus on refining digital-ordering platforms to better align with guest-purchasing behaviors. Since their creation and introduction at the beginning of the pandemic, Smoothie King’s online ordering, curbside pickup and delivery capabilities have continued to grow.
Smoothie King’s keen awareness into what today’s consumers want and its ability to provide likeminded menu options to satisfy these health-centric concerns are also to credit for the franchise’s development. In the third quarter, Smoothie King debuted a new lineup of pumpkin smoothies using real organic pumpkin rather than flavored syrups. The brand also added the new Vegan Mixed Berry Smoothie – a high-quality, plant-based blend featuring Califia Farms® Oat Milk, the popular non-dairy alternative – to the menu.
This commitment to on-the-go convenience, world-class menu innovation and guest health further positions the franchise as a leader in the quick-service restaurant space, which remains an attractive value proposition for prospective owners. As a result, most of the commitments Smoothie King accepted in Q3 came from current franchisees compelled to reinvest in the brand.
Along with Smoothie King cutting the ribbon on its 1,200th store – which opened in Royal Oak, Mich., in August – another notable third-quarter achievement for the franchise came from Franchise Times, which ranked Smoothie King to its Top 200+ franchises list. The list, which published in September, recognized Smoothie King for its strength in systemwide sales in 2019.
“Moving forward, we will continue to improve our digital ordering capabilities and round out our purpose-driven menu – all while demonstrating an unparalleled amount of support for our franchises. This combination will allow Smoothie King to grow even more in the coming months and years,” said Kim.
Smoothie King announced Monday, October 12 its CEO, Wan Kim, will be featured on the Emmy Award-winning, hit television show UNDERCOVER BOSS. The episode is scheduled to air Friday, October 23 (9:00-10:00 PM, ET/PT) on the CBS Television Network. Follow along and engage with the episode on Smoothie King’s Twitter, Instagram and Facebook pages, @SmoothieKing.
For more information on how to become a Smoothie King franchisee, please visit www.smoothiekingfranchise.com.
ABOUT SMOOTHIE KING FRANCHISES, INC.
Smoothie King Franchises, Inc., the original U.S. smoothie franchise, is a privately-held, Dallas-based franchise company. Founded in 1973, Smoothie King has evolved into a lifestyle brand inspiring people to live healthy and active lifestyles via nutritious, great-tasting smoothies. The franchise earned the No. 1 ranking in the smoothie/juice bar category, and No. 14 overall, on Entrepreneur’s prestigious Franchise 500 list in 2020. The company also debuted on the “Inc. 5000” list in 2018.