People visit a Chipotle restaurant in Miami on February 9, 2022.
Joe Raedle | fake images
Chipotle Mexican Grill on Tuesday it posted quarterly earnings and revenue that beat analysts' expectations as more customers visited its restaurants.
The company's shares rose more than 2% in extended trading.
Here's what the company reported compared to what Wall Street expected, according to a survey of analysts by LSEG, formerly known as Refinitiv:
- Earnings per share: Adjusted $10.36 vs. expected $9.75
- Revenue: $2.52 billion vs. $2.49 billion expected
Chipotle reported fourth-quarter net income of $282.1 million, or $10.21 per share, up from $223.7 million, or $8.02 per share, a year earlier. The company said higher costs for meat, produce and cheese hurt margins.
Excluding certain items, the burrito chain earned $10.36 per share.
Net sales increased 15.4% to $2.52 billion.
The company's comparable sales increased 8.4%, beating StreetAccount estimates of 7.1%. Executives said sales grew across all consumer income levels.
Chipotle said foot traffic increased 7.4% in the quarter, bucking a trend of declining visits across the industry. Restaurant giants McDonald's and Starbucks reported declines in traffic during the final three months of the year.
Chief Financial Officer Jack Hartung said the return of barbecue contributed to the quarter's strong same-store sales growth. The chain has also made strides to improve productivity within its restaurants by increasing training and adding more employees to its production lines.
“Performance is one of those activities in an organization our size, it's like taking a rock and starting to push it downhill. It starts very, very slow, but once it starts picking up speed, it continues to gain momentum,” Chipotle told CNBC Chief Operating Officer Scott Boatwright.
Additionally, Chipotle's sales received a boost thanks to the 3% menu price increase it implemented in October.
The company opened 121 new locations during the quarter.
Looking ahead to 2024, Chipotle forecasts full-year same-store sales growth in the mid-single-digit range and plans to open between 285 and 315 new locations. Hartung noted that “unusually cold weather” hurt sales in January, but said underlying demand for the company's burritos and bowls remains strong.
The chain plans to release one or two limited-time menu items this year. Additionally, your marketing will highlight your main menu.
Also in 2024, Chipotle is planning a restaurant test of an avocado-picking robot, called Autocado, and an automated prep line for its burrito bowls and salads. Both robots have already been tested at the company's innovation center.
