Chipotle Mexican Grill, Inc. (CMG) has reported 76.46 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $15.98 million, or $0.55 a share in the quarter, compared with $67.87 million, or $2.17 a share for the same period last year. Revenue during the quarter grew 3.71 percent to $1,034.56 million from $997.51 million in the previous year period. Gross margin for the quarter contracted 346 basis points over the previous year period to 29.79 percent. Total expenses were 97.05 percent of quarterly revenues, up from 89.61 percent for the same period last year. That has resulted in a contraction of 743 basis points in operating margin to 2.95 percent.
Operating income for the quarter was $30.55 million, compared with $103.61 million in the previous year period.
"We are energized and focused to achieve our goals in 2017, and to return to a path of long-term value creation for our shareholders," said Steve Ells, Founder, chairman and chief executive officer of Chipotle. "Returning to our roots of what originally made Chipotle great has helped refocus all of our strategies toward the guest experience. In the upcoming year we intend to continue to simplify and improve our restaurant operations, utilize creative marketing to rebuild our brand, and further the roll-out of our digital sales efforts. All three of these strategic initiatives are centered on improving the guest experience and restoring customer affinity for the Chipotle brand, and we are confident in our teams’ abilities as we start this new year."
Operating cash flow drops significantlyChipotle Mexican Grill, Inc. has generated cash of $349.24 million from operating activities during the year, down 48.89 percent or $334.07 million, when compared with the last year. Cash flow from investing activities was $326.81 million from investing activities during the year as against cash outgo of $464.14 million in the last year.
The company has spent $836.28 million cash to carry out financing activities during the year as against cash outgo of $386.44 million in the last year period.
Cash and cash equivalents stood at $87.88 million as on Dec. 31, 2016, down 64.57 percent or $160.12 million from $248 million on Dec. 31, 2015.
Working capital drops significantly
Chipotle Mexican Grill, Inc. has witnessed a decline in the working capital over the last year. It stood at $240.58 million as at Dec. 31, 2016, down 55.01 percent or $294.12 million from $534.70 million on Dec. 31, 2015. Current ratio was at 1.85 as on Dec. 31, 2016, down from 2.91 on Dec. 31, 2015.
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