Chipotle Mexican Grill (CMG) earnings Q1 2023

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

David Paul Morris | Bloomberg | Getty Images

Chipotle Mexican Grill on Tuesday reported quarterly earnings and revenue that topped analysts’ expectations, fueled by better than expected same-store sales growth.

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

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

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

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

Net sales climbed 17.2% to $2.37 billion. Same-store sales rose 10.9%, topping StreetAccount estimates of 8.6%.  

In February, executives said that January’s same-store sales grew by double digits. A year earlier, the company saw sluggish sales as the omicron Covid outbreak put pressure on staffing and caused some temporary store closures.

Digital orders accounted for nearly 40% of sales during the quarter. Chipotle customers have been ordering their burritos and tacos more in person compared with the year-ago period.

The company opened 41 new locations during the quarter, 34 of which included its drive-thru lanes reserved for digital order pickup.

Looking to the rest of the year, Chipotle is anticipating same-store sales growth in the mid-to-high single digits. It’s expecting the same range for its second-quarter same-store sales growth, roughly in line with StreetAccount estimates of 5.8%.

The company reiterated its plans to open between 255 to 285 new restaurants during 2023.

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