A customer is sitting outside a Chipotle restaurant in Santa Clara, California, USA, on Tuesday, October 19, 2021.
David Paul Morris | Bloomberg | Getty Images
Chipotle Mexican Grill’s quarterly earnings and revenue topped Wall Street’s estimates, driven by consumers’ willingness to pay more for their burritos and dishes.
The company’s shares rose 2% in extended trading.
Here’s what the company reported compared to what Wall Street expected, based on a survey by analysts from Refinitiv:
- Earnings per stock: $ 5.70 adjusted vs. $ 5.64 expected
- Revenue: $ 2.02 billion versus expected $ 2.01 billion
The restaurant chain reported first-quarter net income of $ 158.3 million, or $ 5.59 per share, up from $ 127.1 million, or $ 4.45 per share, a year earlier.
Chipotle’s restaurant operating margins fell as it paid more for beef, avocado, paper and labor. But menu price increases and lower delivery costs helped offset these higher costs.
Excluding corporate restructuring costs, certain legal expenses and other items, Chipotle earned $ 5.70 per share, beating the $ 5.64 per share analysts had expected from Refinitiv.
Revenue rose 16% to $ 2.02 billion, exceeding expectations of $ 2.01 billion.
Sales at the same store, which tracks sales at locations open for at least 13 months, rose 9% during the quarter. Chipotle had previously warned that the omicron variant and winter storms hurt January storms, but the chain topped StreetAccount estimates of 7.9% for same-store sales growth.
Personal sales increased by a third compared to the same period last year, but digital transactions still accounted for 41% of total orders.
Chipotle opened 51 new locations during the quarter, most of which had only digital drive-thru lanes or “Chipotlanes.”
The company did not forecast for the full year, but said it expects growth in same-store sales in the second quarter between 10% to 12%, provided current trends continue. Wall Street expected sales at the same store to increase by 9.3% next quarter, according to StreetAccount.
Read the full earnings report here.
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