Chipotle Mexican Grill (CMG) Earnings Q1 2023

  • Shares of Chipotle Mexican Grill are up 28% this year, giving it a market value of $49.1 billion.
  • The burrito chain topped Wall Street’s estimates for its first-quarter revenue and earnings.
  • Same-store sales rose 10.9%, beating Street estimates by 8.6%.

Pedestrians wearing protective masks walk in front of a Chipotle restaurant on April 19, 2021 in San Francisco, California.

David Paul Morris | Bloomberg | Good pictures

Chipotle Mexican Grill on Tuesday reported Quarterly revenue and earnings topped analysts’ expectations, while same-store sales growth was better than expected.

Shares of the company rose more than 3% in extended trading.

Here’s what the company reported compared to what Wall Street expected, based on a survey of analysts by Refinitiv:

  • Earnings per share: $10.50 vs. $8.92 expected
  • Revenue: $2.37 billion versus $2.34 billion expected

Chipotle reported first-quarter net income of $291.6 million, or $10.50 per share, compared with $158.3 million, or $5.59 per share, a year ago. The company’s menu price hikes and lower butter prices helped improve profit margins compared to the previous year.

Net sales rose 17.2% to $2.37 billion. Same-store sales rose 10.9% and Street Accounts estimates rose 8.6%.

In February, executives reported double-digit same-store sales growth over January. A year ago, the company saw sluggish sales as the Omicron Covid outbreak put pressure on staff and closed some temporary stores.

Digital orders accounted for nearly 40% of sales this quarter. Chipotle customers are ordering their burritos and tacos in person compared to a year ago.

The company opened 41 new locations this quarter, including 34 dedicated drive-thru lanes for digital order pickup.

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Looking ahead to the rest of the year, Chipotle expects same-store sales growth to be in the mid to high single digits. It expects the same range for its second-quarter same-store sales growth, according to Street Account estimates of 5.8%.

The company reiterated its plan to open 255 to 285 new restaurants by 2023.

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