Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use a new predicted earnings per share of $8 per share in the coming year for Chipotle. Using a 24% tax rate, what sales level

Use a new predicted earnings per share of $8 per share in the coming year for Chipotle. Using a 24% tax rate, what sales level in dollars is needed to achieve the $8 in earnings per share. Use the quarterly numbers released on Tuesday 4/21/2020 after 3PM (down below given). Being generous and multiplying these earnings numbers by 4 will Chipotle meet the sales number. Give me the sales number and a yes or no answer.

Revenue

$

1,410,772

100.0

%

Restaurant operating costs (exclusive of depreciation and amortization shown separately below):

Food, beverage and packaging

462,299

32.8

Labor

393,565

27.9

Occupancy

95,279

6.8

Other operating costs

210,762

14.9

General and administrative expenses

106,470

7.5

Depreciation and amortization

58,374

4.1

Pre-opening costs

3,566

0.3

Impairment, closure costs, and asset disposals

9,336

0.7

Total operating expenses

1,339,651

95.0

Income from operations

71,121

5.0

Interest and other income, net

2,743

0.2

Income before income taxes

73,864

5.2

Benefit (provision) for income taxes

2,524

0.2

Net income

$

76,388

5.4

Earnings per share:

Basic

$

2.75

Diluted

$

2.70

Weighted-average common shares outstanding:

Basic

27,792

Diluted

28,323

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audits

Authors: Arthur E Cutforth

1st Edition

1017097445, 978-1017097443

More Books

Students also viewed these Accounting questions

Question

b. What is the cdf of depth?

Answered: 1 week ago

Question

Evaluate the importance of diversity in the workforce.

Answered: 1 week ago

Question

Identify the legal standards of the recruitment process.

Answered: 1 week ago