Chipotle Mexican Grill (CMG) delivered strong financial results for the first quarter of 2023, surpassing analyst estimates and demonstrating continued growth momentum. Revenue surged by 14.1% year-over-year to $2.702 billion, exceeding the consensus estimate of $2.675 billion. The company’s adjusted earnings per share reached $13.37, significantly higher than the anticipated $11.68 per share. Comparable restaurant sales experienced a 7% increase compared to the same period last year, driven by higher transaction volume and a modest increase in average check. Digital sales remained a significant contributor, accounting for 36.5% of food and beverage revenue. Chipotle’s focus on operational efficiency paid off, with the operating margin expanding to 16.3% from 15.5% in the previous year. The company aggressively expanded its footprint by opening 47 new restaurants during the quarter, with 43 of them featuring the popular Chipotlane. Additionally, Chipotle repurchased $25 million of its stock during the quarter and has significant remaining authorization for further buybacks. The company’s continued investment in exceptional people, delicious food, and fast throughput gives confidence in achieving its long-term goal of more than doubling its business in North America and expanding internationally. Chipotle’s positive earnings report and optimistic outlook for continued comparable sales growth were well-received by investors, sending its shares up 3.30% after hours.
Chipotle Reports Strong Q1 Results, Shares Rise After Hours
