The Chipotle Mexican Grill logo is seen in Manhattan, New York.
Shannon Stapleton | Reuters
Chipotle Mexican Grill on Wednesday reported quarterly earnings and revenue that topped analysts' expectations, helped by increased traffic to its restaurants.
Shares rose 4% in extended trading.
Here's what the company reported compared to what Wall Street expected, based on LSEG's survey of analysts:
- Earnings per share: $13.37 revised versus $11.68 expected
- Revenue: $2.7 billion vs. $2.68 billion expected
Chipotle reported first-quarter net income of $359.3 million, or $13.01 per share, up from $291.6 million, or $10.50 per share, a year earlier.
Excluding 36 cents in earnings from a legal reserve increase, the burrito chain earned $13.37 per share.
Sales network increased 14.1% to 2.7 billion USD.
The company's same-store sales rose 7%, exceeding StreetAccount estimates of 5.2%. Chipotle said traffic increased 5.4% year-over-year, while average checks increased only 1.6%.
IN February, Chief Financial Officer Jack Hartung told analysts that “unusually cold weather” impacted sales in January. However, demand will likely recover during the remainder of the quarter to make up for a sluggish first month.
Chipotle has become the rare restaurant chain to report increased transactions despite higher menu prices. The company again raised prices in October, citing inflation. Others in the restaurant industry have turned to limited-time deals and offers to attract customers, especially those with lower incomes.
Earlier this month, Chipotle raised prices in California to offset the state's higher prices. minimum wage for fast-food workers, but the company has no plans to raise wages any further, CEO Brian Niccol said on CNBC.The bell ends” on Wednesday.
The chain added 47 new locations in the first quarter, moving closer to its long-term goal of doubling its total number of restaurants to reach 7,000 stores.
For the full year, Chipotle now forecasts same-store sales to increase by a mid-to-high percentage, up from a mid-single-digit increase previously. The company reiterated its forecast for 285 to 315 new locations by 2024.
In March, Chipotle's board of directors approved a 50-for-1 stock split, one of the largest stock splits in the history of the New York Stock Exchange. The company is seeking shareholder approval at its annual meeting on June 6. If investors vote “yes,” shares will begin trading on a post-split basis on the 26th. June.
