Chipotle Mexican Grill, Inc. (NYSE:CMG) Q4 2014 Earnings Conference Call - Final Transcript

Feb 03, 2015 • 04:30 pm ET


Chipotle Mexican Grill, Inc. (NYSE:CMG) Q4 2014 Earnings Conference Call - Final Transcript


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Good day everyone and welcome to the Chipotle Mexican Grill's Fourth Quarter 2014 Earnings Conference Call. All participants are now in a listen-only mode. After the speakers remarks, there will be a question-and-answer session (Operator Instructions). As a reminder, this conference is being recorded. Thank you.

I would now like introduce Chipotle's Director of Investor Relations, Mark Alexee. You may begin your conference.

Mark Alexee

Good afternoon everyone and welcome to our call today. By now you should have access to our earnings announcement released this afternoon for the fourth quarter and year end 2014. It may also be found on our website at in the Investor Relations section.Before we begin our presentation, I will remind everyone that parts of our discussion today will include forward-looking statements as defined in the securities laws. (Forward-Looking Cautionary Statements)

Our discussion today will also include non-GAAP financial measures, a reconciliation of which will be found on the presentation page of the Investor Relations section of our Web site. I would like to remind everyone that we have adopted a self-imposed quiet period, restricting communications with investors during that period. The quiet period begins on the first day of the last month of each fiscal quarter and continues over the next earnings conference call. For the first quarter, it will begin March 1st and will continue through our Q1 earnings release on April 21, 2015.

On the call with us today are Steve Ells, our Chairman and Co-Chief Executive Officer; Monty Moran, Co-Chief Executive Officer; and Jack Hartung, Chief Financial Officer; and Mark Crumpacker, Chief Marketing and Development Officer.

With that, I will now turn the call over to Steve.

Steve Ells

Thanks Mark. I am extremely pleased with our performance during the fourth quarter and throughout 2014. During the quarter we generated revenue of $1.1 billion, an increase of 26.7% on comparable restaurant sales growth of 16.1% and the opening of 16 new restaurants. This produced diluted earnings per share of $3.84, an increase of 51.8%.

For the full year we generated revenue

Steve Ells

$4.1 billion on comparable restaurant sales growth of 16.8% and the opening of 192 new restaurants. While those results would be strong for a Company of any size I think they're particularly impressive considering how we now have nearly 1,800 restaurants averaging nearly $2.5 million each. Quite simply, I do not think that we would be able to deliver these results without such a compelling and broader vision we have made it our mission to change the way people think about any fast food and we have created an extraordinary food and people culture.

And a very strong unit economic model that is allowing us to do that. Recently we've seen strong evidence that our commitment to sourcing sustainably raised ingredients is resonating with many consumers. In January we decided to spend one of our pork suppliers after a routine audit reveal that they were not following all of our animal welfare protocols. Choosing to suspend the supplier meant that we would not be