Chipotle Mexican Grill Beats Analyst Expectations with Strong Quarterly Earnings
Chipotle Mexican Grill, the fast-casual dining chain known for its burritos and bowls, reported quarterly earnings and revenue that exceeded analysts’ expectations. The company’s stock rose 4% in extended trading following the release of its financial results.
Earnings per share were reported at $13.37 adjusted, higher than the expected $11.68, while revenue came in at $2.7 billion, beating the estimated $2.68 billion. Net income for the first quarter was $359.3 million, up from $291.6 million the previous year. Same-store sales also experienced a 7% increase, surpassing estimates.
Chipotle credited its growth to improved value perception among diners and increased transaction rates. The company raised prices in California by 7% to offset higher minimum wages for fast-food workers. They also plan to focus on improving speed and efficiency in preparing their popular menu items.
In line with their expansion plans, Chipotle added 47 new locations in the first quarter, moving closer to their goal of doubling the total number of restaurants to reach 7,000. The company now expects same-store sales to grow by a mid-to-high single-digit percentage for the full year.
At their upcoming annual meeting on June 6, Chipotle will seek shareholder approval for a 50-for-1 stock split, a move that could increase accessibility for smaller investors. Overall, the chain’s strong performance in the first quarter signals continued success and growth for the popular dining establishment.
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