Chipotle Mexican Grill has reported impressive first-quarter earnings, surpassing analysts’ expectations on both revenue and earnings per share. The company’s strong performance was driven by increased customer traffic, leading to a 4% rise in its stock price during extended trading.
Excluding a legal reserve charge, Chipotle’s earnings per share came in at $13.37, exceeding the consensus estimate of $11.68. Revenue also surpassed expectations, reaching $2.7 billion compared to the anticipated $2.68 billion.
Chipotle has defied industry trends by reporting rising transactions despite higher menu prices due to inflation. The company’s same-store sales grew by 7%, outperforming estimates of 5.2%. Customer traffic increased by 5.4% year-over-year, while the average check size rose by a modest 1.6%.
During the quarter, Chipotle expanded its footprint by adding 47 new locations, bringing it closer to its long-term goal of doubling its store count to 7,000. The company has raised its projections for same-store sales growth for the full year, now anticipating a mid-to-high single-digit percentage increase. Additionally, Chipotle’s board has approved a 50-for-1 stock split, which is subject to shareholder approval at the annual meeting on June 6.
Chipotle’s strong performance highlights its ability to navigate inflationary pressures and maintain customer loyalty. The company’s ongoing expansion plans and anticipated growth in same-store sales indicate continued optimism about its future prospects.
