NEWPORT BEACH, Calif., Oct. 21, 2021 /PRNewswire/ — Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its third quarter ended September 30, 2021.
Third quarter highlights, year over year:
- Total revenue increased 21.9% to $2.0 billion
- Comparable restaurant sales increased 15.1%
- Digital sales grew 8.6% and accounted for 42.8% of sales
- Operating margin was 12.3%, an increase from 6.7%
- Restaurant level operating margin was 23.5% 1, an increase of 400 basis points
- Diluted earnings per share was $7.18, a 154.6% increase from $2.82. Excluding a $0.16 after-tax net impact resulting from a tax benefit, which was partially offset by certain stock compensation expenses, corporate restructuring costs, restaurant asset impairment and closure costs, and certain other expenses, adjusted diluted earnings per share was $7.02, an 86.7% increase from $3.76 1
- Opened 41 new restaurants including 2 relocations
1 Restaurant level operating margin, 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.
“Chipotle’s third quarter results demonstrate strong momentum in our business fueled by a multi-pronged strategy and a passionate team that’s delighted to welcome more guests back into our restaurants,” said Brian Niccol, Chairman and CEO, Chipotle. “Our team has proven their ability to be resilient and successfully execute against macro complexities. As a result, I believe we are better positioned to drive sustainable long-term growth than ever before, which makes me excited about what we can accomplish in the years ahead.”
COVID-19 and Liquidity Update:
The health and well-being of our employees and guests continues to be our top priority. Beyond the investments made in our people, restaurants, and supply chain, we are closely following the recommendations of the CDC and local health departments. We have implemented and enhanced numerous protocols that give our employees and guests confidence that Chipotle remains steadfast in our commitment to keep them safe as in-restaurant ordering and dining increases.
As of September 30, 2021, Chipotle continues to maintain a strong financial position with $1.2 billion in cash, investments and restricted cash, and no debt. We also have access to a $500 million untapped credit facility. 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.
Results for the three months ended September 30, 2021:
Revenue in the third quarter was $2.0 billion, an increase of 21.9% compared to the third quarter of 2020 and includes a 15.1% increase in comparable restaurant sales. We believe on-going strength in digital sales, the strong recovery of in-restaurant sales, and positive customer reception to our new menu items contributed to the strong revenue growth. For Q4, while uncertainty remains on several fronts including the potential impact of COVID-19 as well as inflationary and staffing pressures, we’re encouraged by our strong underlying business momentum and if this trend continues, we expect our comparable restaurant sales to be in the low to mid double-digits range. This assumes about 200 basis points less pricing contribution during the fourth quarter versus the third quarter as we lap some of our delivery menu price increases, and our brisket limited time offer will be for a partial quarter this year as compared to the full quarter of carne asada last year.
Digital sales grew 8.6% year over year to $840.4 million and represented 42.8% of sales. A little more than half of the digital sales were from order ahead transactions as guests increasingly appreciate both the convenience and value offered by this channel, as well as the added convenience of more Chipotlanes.
We opened 41 new restaurants during the third quarter including two relocations, bringing the total restaurant count to 2,892. During the quarter, 36 of the 41 new restaurants included a Chipotlane. These formats continue to perform very well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins, and returns.
Food, beverage and packaging costs in the third quarter were 30.3% of revenue, a decrease of 200 basis points compared to the third quarter of 2020. The decrease was due primarily to leverage from menu price increases, partially offset by higher costs, most notably beef and freight.
Restaurant level operating margin was 23.5%, an increase from 19.5% in the third quarter of 2020. The improvement was driven primarily by leverage from comparable restaurant sales including menu price increases, partially offset by wage inflation and higher costs associated with beef and freight.
General and administrative expenses for the third quarter were $146.0 million on a GAAP basis, or $136.8 million on a non-GAAP basis, excluding $7.6 million for a COVID-19 related modification made in December 2020 to our 2018 performance shares, $1.5 million of transformation expenses, and $0.1 million of certain other expenses. GAAP and non-GAAP general and administrative expenses for the third quarter of 2021 also include $99.8 million of underlying general and administrative expenses, $27.8 million of non-cash stock compensation, $8.5 million related to higher bonus accruals as well as payroll taxes on equity vesting and stock option exercises, and $0.6 million related to our upcoming all-manager conference.
The GAAP effective income tax rate for the third quarter was 14.7%, which is lower than our expected effective income tax rate for the full year 2021, due to elevated excess tax benefits related to option exercises and equity vesting and a return to provision tax benefit from a net operating loss generated on our 2020 federal income tax return and carried back to prior years that was recorded in the third quarter. On a non-GAAP basis, the 2021 third quarter effective tax rate was 19.7%.
Net income for the third quarter was $204.4 million, or $7.18 per diluted share, an increase from $80.2 million, or $2.82 per diluted share, in the third quarter of 2020. Excluding the impact of a tax benefit, PSU modification expenses, corporate restructuring expenses, and restaurant asset impairment and closure costs, adjusted net income was $199.8 million and adjusted diluted earnings per share was $7.02.
During the quarter, our Board of Directors approved the investment of up to an additional $100 million, exclusive of commissions, to repurchase shares of our common stock, subject to market conditions. Including this repurchase authorization, $209.8 million was available as of September 30, 2021. The repurchase authorization may be modified, suspended, or discontinued at any time. We repurchased $98.7 million of stock at an average price per share of $1,813 during the third quarter.
More information will be available in our Quarterly Report on Form 10-Q, which will be filed with the SEC by the end of October.
HUNTINGTON BEACH, Calif., Oct. 21, 2021 (GLOBE NEWSWIRE) — BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial results for its fiscal 2021 third quarter that ended Tuesday, September 28, 2021.
Third Quarter 2021 Highlights Compared to Third Quarter 2020
- Total revenues increased 41.9% to $282.2 million
- Total restaurant operating weeks increased 1.7%
- Comparable restaurant sales improved 41.8%
- Net loss of $2.2 million compared to $6.6 million and diluted net loss per share of $0.09 compared to $0.30
- Third quarter 2021 includes a $3.1 million pretax, or $0.10 per share, benefit related to the Employee Retention Tax Credit in conjunction with the CARES Act and a $2.2 million pretax, or $0.07 per share, impairment charge for one restaurant.
- Third quarter 2020 includes a $1.9 million pretax, or $0.07 per share, gain related to a sale-leaseback transaction and a $2.3 million pretax, or $0.07 per share, gain related to a settlement with credit card providers pertaining to interchange fees and a settlement related to the repair of handheld tablets.
- Adjusted EBITDA of $16.4 million, compared to $6.6 million
“I am proud of the resilience of our restaurant teams during this continued challenging operating environment, as their unwavering commitment to our Gold Standard of Operational Excellence continues to create memorable experiences for our guests during every visit,” commented Greg Levin, Chief Executive Officer and President. “We entered the quarter encouraged by positive July comparable restaurant sales across our portfolio, compared to the same period in 2019. However, we experienced the same pullback of sales as the entire industry from the spread of the COVID-19 Delta variant that began in August. The COVID resurgence also exacerbated staffing related challenges during the quarter and resulted in reduced dining room capacities and limited menus and hours in certain locations. As a result, we finished the third quarter with comparable restaurant sales down 0.5%, compared to the same period in 2019. Additionally, pandemic induced supply chain shortages caused rapid commodity food cost inflation, resulting in lower than anticipated restaurant operating margins.
“Staffing remains a major driver of BJ’s performance and our greatest opportunity to grow sales. Our restaurants operating close to 2019 staffing levels generated mid-single digit positive comparable restaurant sales in the third quarter, as compared to the same period in 2019, and continue generating positive comparable restaurant sales in October. Looking forward, as our staffing levels improve, we expect sales to benefit as we seat more tables, expand back to pre-pandemic hours, and return all of our restaurants to full menus by early November. We continue to operate with an offensive mindset focused on top line growth, while managing through the industry labor, inflation and supply chain challenges triggered by the pandemic to provide leverageable opportunities to grow the BJ’s business profitably,” continued Levin.
The Company re-opened its Richmond, Virginia restaurant in August and currently plans to open at least eight restaurants in fiscal 2022. “The two new restaurants we opened this year, Lansing, Michigan and Merrillville, Indiana, both continue to perform above our high expectations and generated sales of $119,000 and $114,000, respectively, in our most recent week or more than 10% higher than our system on average. We remain confident that there is capacity for at least 425 BJ’s restaurants domestically and we are focused on executing our national expansion plan in a careful and controlled manner that balances new restaurant growth with top-tier locations, new restaurant quality, and hospitality our guests know and love,” concluded Levin.
Investor Conference Call and Webcast
BJ’s Restaurants, Inc. will conduct a conference call on its third quarter 2021 earnings release today, October 21, 2021, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Management will discuss the financial results and host a question and answer session. In addition, a live audio webcast of the call will be accessible to the public on the “Investors” page of the Company’s website located at http://www.bjsrestaurants.com, and a recording of the webcast will be archived on the site for 30 days following the live event. Please allow 15 minutes to register and download and install any necessary software.
About BJ’s Restaurants, Inc.
BJ’s Restaurants, Inc. (“BJ’s”) is a national brand with brewhouse roots where craft matters. BJ’s broad menu has something for everyone: slow-roasted entrees, like prime rib, BJ’s EnLIGHTened Entrees® including Cherry Chipotle Glazed Salmon, signature deep dish pizza and the often imitated, but never replicated world-famous Pizookie® dessert. BJ’s has been a pioneer in the craft brewing world since 1996, and takes pride in serving BJ’s award-winning proprietary handcrafted beers, brewed at its brewing operations in five states and by independent third party craft brewers. The BJ’s experience offers high-quality ingredients, bold flavors, moderate prices, sincere service and a cool, contemporary atmosphere. Founded in 1978, BJ’s owns and operates 212 casual dining restaurants in 29 states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia and Washington. All restaurants offer dine-in, take-out, delivery and large party catering. For more BJ’s information, visit http://www.bjsrestaurants.com.
DALLAS, Oct. 19, 2021 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT) today announced selected business results for the first quarter of fiscal 2022 and provided a business update for the second quarter of fiscal 2022 in advance of the Brinker International Investor Day to be held on October 20, 2021.
“Brinker’s first quarter delivered positive sales and continued to significantly outpace the industry in traffic,” said Wyman Roberts, Chief Executive Officer and President. “But the COVID surge starting in August exacerbated the industry-wide labor and commodity challenges and impacted our margins and bottom line more than we anticipated. We are responding to these COVID headwinds with increased focus on hiring and retention efforts, and working with our partners to gain further stabilization of the supply chain environment. In addition, we have taken immediate incremental pricing actions, increasing our full year target to 3% – 3.5%, to offset inflationary costs and protect margins as we move forward.”
Fiscal 2022 Highlights – First Quarter
- Brinker International’s Company sales in the first quarter of fiscal 2022 increased to $859.6 million as compared to $728.2 million in the first quarter of fiscal 2021.
- Operating income in the first quarter of fiscal 2022 increased to $25.6 million as compared to $24.4 million in the first quarter of fiscal 2021. Operating income, as a percentage of Total revenues, in the first quarter of fiscal 2022 decreased to 2.9% as compared to 3.3% in the first quarter of fiscal 2021.
- Restaurant operating margin, as a percentage of Company sales, in the first quarter of fiscal 2022 decreased to 10.4% as compared to 11.6% in the first quarter of fiscal 2021.
- The primary drivers of the decline in Restaurant operating margin were 150 bps of higher restaurant labor costs and 60 bps of higher commodity costs. Restaurant labor costs increased due to market rate and merit increases. Temporary incremental overtime and training costs also contributed to the increase.
- Net income per diluted share, on a GAAP basis, in the first quarter of fiscal 2022 increased to $0.28 as compared to $0.23 in the first quarter of fiscal 2021.
- Net income per diluted share, excluding special items, in the first quarter of fiscal 2022 increased to $0.34 as compared to $0.28 in the first quarter of fiscal 2021.
For non-GAAP reconciliations, please refer to the Non-GAAP Information and Reconciliations section of this release.
NEW YORK, Oct. 14, 2021 /PRNewswire/ — OTG Management, LLC, the leading provider of dining in airports and hospitality in North America, successfully completed a new round of financing. With $1.25 billion of new senior secured debt, the company will target expansion opportunities. The move will provide OTG with liquidity and flexibility as well as additional committed capital to continue technological innovation, development of new markets, dining concepts, and locations in airports.
“We now have the committed growth capital to execute on our long-term strategic plan, at a time when the travel industry is poised to regain normalcy after the shut-downs caused by the COVID-19 pandemic,” said Rick Blatstein, Chief Executive Officer of OTG. “As OTG continues to learn the preferences of travelers and guests, this move positions us to offer innovative solutions to meet their evolving demands, safely and efficiently – whenever they are away from home.”
OTG’s refinancing was led by funds managed by affiliates of Centerbridge Partners, L.P., Oaktree Capital Management, L.P. Sculptor Capital Management, Inc. and CPPIB Credit Americas, Inc. as well as Oak Hill Advisors, L.P. The new facility is comprised of a $1.05 billion First Lien Senior Secured Term Loan and a $200mm Delayed Draw Term Loan Facility.
Centerbridge and Oaktree jointly stated, “We are excited to partner with OTG as it continues to provide an excellent customer experience for travelers. We look forward to supporting OTG’s goals to grow and innovate the airport experience.”
Moelis & Company acted as exclusive financial advisor and placement agent to OTG for this transaction.
About OTG Management, LLC
OTG develops and operates restaurants and retail markets in airports throughout North America. With more than 350 locations across 22 terminals in 10 of the world’s busiest airports, OTG is an industry leader. OTG combines world-class hospitality, award-winning cuisine, innovative design, and state-of-the-art technology to deliver a superior guest experience. Founded in Philadelphia in 1996, OTG serves hundreds of millions of passengers annually. For more information, visit OTGexp.com.