Chipotle Mexican Grill (CMG) shares are down despite reporting better-than-expected earnings. While the company exceeded analysts’ estimates on adjusted EPS, a revenue miss and mixed analyst reactions are driving the stock lower.
Results for: CMG
Chipotle Mexican Grill (CMG) reported strong third-quarter financial results, exceeding revenue and earnings expectations. Comparable restaurant sales grew by 6%, driven by higher transactions and increased average check size. The company opened 86 new restaurants, showcasing its aggressive expansion strategy. However, despite the positive results, Chipotle’s stock dropped in after-hours trading, likely due to investor concerns about future growth prospects.
Chipotle Mexican Grill (CMG) reported impressive financial results for the first quarter of 2023, surpassing analyst estimates and demonstrating continued growth. Revenue increased 14.1% year-over-year to $2.7 billion, exceeding expectations of $2.675 billion. Adjusted earnings per share reached $13.37, significantly higher than the estimated $11.68. Comparable restaurant sales surged by 7% due to increased transactions and a slight increase in average check. Digital sales remained strong, accounting for 36.5% of food and beverage revenue. The company’s continued focus on operational efficiency resulted in an operating margin of 16.3%, up from 15.5% in the previous year. Chipotle opened 47 new restaurants in the quarter, 43 of which featured the popular Chipotlane. Additionally, the company repurchased $25 million of its stock during the quarter and has significant remaining authorization for further buybacks.