The Mexican chain reported in line with expectations at the top line (revenue) and earnings, however the keenly watched same store sales growth rate was slightly below expectations;
- Q4 Revenue $2.85 billion, up +13% y/y and in line with consensus.
- Q4 Adjusted EPS 25c, smack on expectations.
- SS sales +5.4%, below the estimate of +5.7%, and lower than this time last year.
The other important aspects are average restaurant sales of $3.21 million, up +6.5% y/y and ahead of expectations ($3.15m) and they retained guidance for new restaurant openings of 315 to 345 for the year. Overall, a solid result, only slight negative was SS sales growth that might create some near term weakness, though the stock is ~$US10 of its highs.
MM remains long & bullish CMG US ~$US59
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