Chipotle Mexican BBQ Quarterly earnings and revenue on Wednesday beat analysts’ expectations due to growth in restaurant traffic.
The stock rose 4% in after-hours trading.
According to a survey of analysts by the London Stock Exchange Group (LSEG), the company’s report compared with Wall Street expectations:
- Earnings per share: Adjusted $13.37, $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 a share, up from $291.6 million, or $10.50 a share, a year earlier.
Excluding a 36-cent loss from an increase in required reserves, the burrito chain earned $13.37 a share.
Net sales Up 14.1% to $2.7 billion.
The company’s same-store sales rose 7%, beating StreetAccount’s forecast of 5.2%. Chipotle said customer traffic was up 5.4% from a year ago, while the average check was up just 1.6%.
Existing February Chief Financial Officer Jack Hartung told analysts that “unusually cold weather” hurt sales in January. However, demand may pick up again in the rest of the quarter to offset the slowdown in the first month.
Chipotle became a rare restaurant chain to see rising sales despite rising menu prices. Citing inflation, the company raised prices again in October. Others in the restaurant industry are turning to limited-time deals and offers to attract customers, especially those with lower incomes.
Earlier this month, Chipotle raised prices in California to offset higher prices in the state with a minimum wage. CEO Brian Nichol told CNBC that the company has no plans to give more raises to fast-food workers.Last Hour” Wednesday.
The chain added 47 new stores in the first quarter, moving a step closer to its long-term goal of doubling its total restaurant count to 7,000 stores.
Chipotle now expects full-year same-store sales to increase by a mid-single-digit percentage, up from its previous mid-single-digit growth range. The company reiterated its forecast to open 285 to 315 new locations in 2024.
In March, Chipotle’s board of directors approved a 50-for-1 stock split, one of the largest stock splits in New York Stock Exchange history. The company is seeking shareholder approval at its annual meeting on June 6. If investors vote in favor, the stock will begin trading post-split on June 26.
