Chipotle: Q4 Earnings Beat Expectations

EPS Tops Estimates, Revenue Misses

Chipotle Mexican Grill reported its fourth-quarter earnings on Tuesday, beating expectations on earnings per share but missing on revenue estimates. The company's EPS came in at $8.29 per share, exceeding the Refinitiv consensus estimate of $8.27. Meanwhile, revenue totaled $2.18 billion, falling short of the $2.21 billion estimate.

Key Highlights:

• Comparable restaurant sales increased by 5.5%, driven by increased menu prices and higher customer traffic.
• Digital sales remained strong, accounting for 36% of total sales.
• Restaurant-level operating margin was 22.2%, down slightly from 22.6% in the same quarter last year due to increased labor costs.
• Chipotle opened 55 new restaurants during the quarter, bringing its total to 3,134.

Despite the revenue miss, Chipotle's CEO, Brian Niccol, expressed optimism about the company's future performance. "We remain committed to delivering industry-leading returns for our shareholders and believe that our long-term growth prospects are strong," he said.

Outlook:

For the full year 2023, Chipotle expects comparable restaurant sales growth in the range of 6% to 8%. The company also anticipates opening 245 to 255 new restaurants.