Chipotle Mexican Grill reported strong first-quarter earnings and revenue, driven by increased customer traffic. The company exceeded analysts’ expectations on both earnings and revenue, and its stock rose 4% in extended trading. Excluding a legal reserve charge, Chipotle’s earnings per share were $13.37, compared to the $11.68 expected by analysts. Revenue reached $2.7 billion, surpassing the $2.68 billion consensus estimate.
Despite higher menu prices due to inflation, Chipotle has witnessed a surge in customer transactions. Same-store sales jumped 7%, exceeding StreetAccount’s estimate of 5.2%. Traffic increased by 5.4% compared to the previous year, while the average check size increased by only 1.6%. The company added 47 new locations during the quarter, bringing it closer to its goal of reaching 7,000 stores. Chipotle anticipates continued growth, with mid-to-high single-digit percentage growth in same-store sales for the full year. Additionally, the board has approved a 50-for-1 stock split, which will take effect after shareholder approval on June 6.