Shares of Chipotle Mexican Grill Inc. rose after hours on Tuesday after the Mexican fast-casual chain reported fourth-quarter results that topped Wall Street’s estimates, as consumer demand and higher prices on the menu outweighed higher ingredient costs. The company reported fourth-quarter net income of $282.1 million, or $10.21 a share, compared with $223.7 million, or $8.02 a share, during the same quarter in 2022. Chipotle reported adjusted earnings of $10.36 a share.
Revenue rose 15.4%, to $2.52 billion. Same-store sales increased 8.4%. Analysts polled by FactSet expected Chipotle
CMG,
+0.68%
to report adjusted earnings per share of $9.71, on revenue of $2.49 billion, with a 7.1% same-store-sales gain. The sales results for the quarter were helped by a 7.4% increase in consumer transactions at restaurants. Digital sales accounted for more than a third of total food and drink sales. Costs for beef, produce and queso rose. Costs for paper fell. Executives said they expected full-year same-store sales growth in the “mid-single-digit range.” FactSet forecast a 5.3% increase. Shares rose 2.9% after hours. “We opened 121 new restaurants during the fourth quarter with 110 locations, including a Chipotlane,” executives said in Chipotle’s earnings release. “These formats continue to perform well and are helping enhance guest access and convenience, as well as increase new-restaurant sales, margins, and returns.” Chipotle’s results follow a dimmer outlook from McDonald’s Corp.
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Revenue rose 15.4%, to $2.52 billion. Same-store sales increased 8.4%. Analysts polled by FactSet expected Chipotle
CMG,
+0.68%
to report adjusted earnings per share of $9.71, on revenue of $2.49 billion, with a 7.1% same-store-sales gain. The sales results for the quarter were helped by a 7.4% increase in consumer transactions at restaurants. Digital sales accounted for more than a third of total food and drink sales. Costs for beef, produce and queso rose. Costs for paper fell. Executives said they expected full-year same-store sales growth in the “mid-single-digit range.” FactSet forecast a 5.3% increase. Shares rose 2.9% after hours. “We opened 121 new restaurants during the fourth quarter with 110 locations, including a Chipotlane,” executives said in Chipotle’s earnings release. “These formats continue to perform well and are helping enhance guest access and convenience, as well as increase new-restaurant sales, margins, and returns.” Chipotle’s results follow a dimmer outlook from McDonald’s Corp.
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