X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DENVER-Real estate owners with vacant space take note: Chipotle Mexican Grill’s expansion plans likely will include a greater percentage of existing space than previously, executives said at the company’s second quarter conference call.

With less new space being developed, Chipotle’s plans to maintain 2009 expansion plans of 120 to 130 new units in 2010 will necessitate looking at existing space, said Jack Hartung, CFO.

“A couple of years ago, 60% of our openings were in new development spaces. Now, that likely will fall below 50%,” Hartung said. “We’re beholden to the developer. Space is being delivered to us later.”

Existing space is more expensive, as kitchens and other areas must be redone, but the company still expects to open “thousands” of new restaurants, Hartung said. Chipotle opened 24 new restaurants during the second quarter and 50 new units during the first half.

For the quarter, sales were $388.8 million, up 14.1% from the same quarter last year. Comparable restaurant sales increased 1.7%. Net income was $35.4 million, up 44.7% from the prior-year quarter.

For the first half, revenues were $743.3 million, up 15.0% from last year. Comp sales rose 1.9%. Net income was $60.8 million, an increase of 45.6% over the first half of last year.

As of June 30, Chipotle operated 886 restaurants.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.