Chipotle Mexican Grill has reported quarterly earnings and revenue that exceeded analysts’ expectations, with a significant increase in restaurant traffic. The company’s same-store sales surpassed estimates, and its foot traffic rose by 7.4% in the quarter, defying the industry-wide trend of declining visits.
The company’s earnings per share stood at $10.36, adjusted versus the expected $9.75, while its revenue totaled $2.52 billion, surpassing the anticipated $2.49 billion. Chipotle’s fourth-quarter net income reached $282.1 million, or $10.21 per share, marking a notable increase from the previous year. The rise in net sales by 15.4% to $2.52 billion further solidified the company’s performance.
Chipotle’s same-store sales experienced a substantial 8.4% increase, outperforming StreetAccount estimates of 7.1%. This growth was attributed to a 3% menu price hike implemented in October. Additionally, the company opened 121 new locations during the quarter, contributing to its expansion.
Looking ahead to 2024, Chipotle foresees mid-single-digit growth in full-year same-store sales and plans to open between 285 and 315 new locations. The company’s positive outlook reflects its strong performance and strategic expansion plans.
Shares of Chipotle rose more than 1% in extended trading following the release of the earnings report, indicating investor confidence in the company’s performance. The successful quarterly results position Chipotle as a strong player in the restaurant industry, defying prevailing market trends and demonstrating its ability to attract and retain customers.
