Chipotle Mexican Grill (CMG) Q1 2024 earnings

Chipotle Mexican Grill on Wednesday reported quarterly earnings and income that beat analysts’ expectations, fueled by greater site visitors to its eating places.

The inventory rose 4% in prolonged buying and selling.

Here is what the corporate reported in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by LSEG:

• Earnings per share: $13.37 adjusted vs. $11.68 anticipated
• Income: $2.7 billion vs. $2.68 billion anticipated

Chipotle reported first-quarter web earnings of $359.3 million, or $13.01 per share, up from $291.6 million, or $10.50 per share, a 12 months earlier.

Excluding a 36-cent hit from will increase to its authorized reserves, the burrito chain earned $13.37 per share.

Internet gross sales climbed 14.1% to $2.7 billion.

The corporate’s same-store gross sales rose 7%, topping StreetAccount estimates of 5.2%. Chipotle stated site visitors elevated 5.4% from the year-ago interval, whereas the common verify was up simply 1.6%.

In February, Chief Monetary Officer Jack Hartung informed analysts that “unusually cold weather” harm January gross sales. However demand seemingly rebounded in the remainder of the quarter to offset the sluggish first month.

Chipotle has turn out to be the uncommon restaurant chain to report rising transactions regardless of greater menu costs. The corporate as soon as once more raised its costs in October, citing inflation. Others within the restaurant trade have turned to limited-time presents and offers to enchantment to clients, notably these with decrease incomes.

Earlier this month, Chipotle raised costs in California to offset the state’s greater minimum wage for fast-food staff, however the firm doesn’t have plans for any extra hikes, CEO Brian Niccol stated on CNBC’s “Closing Bell” on Wednesday.

The chain added 47 new places to its footprint in the course of the first quarter, inching nearer to its long-term objective of doubling its whole variety of eating places to succeed in 7,000 shops.

For the complete 12 months, Chipotle now anticipates same-store gross sales will develop by a mid-to-high single-digit proportion, up from its prior vary of a mid-single-digit enhance. The corporate reiterated its forecast of 285 to 315 new places in 2024.

In March, Chipotle’s board authorised a 50-for-1 inventory cut up, one of many largest within the New York Inventory Trade’s historical past. The corporate is searching for shareholder approval at its annual assembly on June 6. If traders vote “yes,” the inventory will begin buying and selling on a post-split foundation on June 26.