Chipotle’s profits beat estimates as customers paid more, helping to offset higher costs 2022-04-26 14:35:10


A customer sits outside a Chipotle restaurant in Santa Clara, California, US, on Tuesday, October 19, 2021.

David Paul Morris | Bloomberg | Getty Images

Chipotle Mexican GrillQuarterly earnings and revenue beat Wall Street estimates, driven by consumers’ willingness to pay more for burritos and bowls.

The company’s shares rose 2% in extended trading.

Here’s what the company reported compared to what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $5.70, adjusted vs. $5.64 expected
  • Revenue: $2.02 billion vs. $2.01 billion forecast

The restaurant chain reported first-quarter net income of $158.3 million, or $5.59 per share, up from $127.1 million, or $4.45 per share, a year earlier.

Chipotle’s operating margins shrank as it paid more for beef, avocado, paper and labor. However, higher menu prices and lower delivery costs helped offset those higher costs.

Excluding company restructuring costs, some legal expenses and other items, Chipotle earned $5.70 per share, beating the $5.64 per share forecast by analysts surveyed by Refinitiv.

Net sales rose 16% to $2.02 billion, beating expectations of $2.01 billion.

Same-store sales, which track sales at open locations for at least 13 months, were up 9% in the quarter. Chipotle previously warned that variable omicron and winter storms are hurting January’s storms, but the chain topped StreetAccount estimates with 7.9% for same-store sales growth.

In-person sales jumped by a third from the same period last year, but digital transactions still account for 41% of all orders.

Chipotle opened 51 new locations during the quarter, most of which had digital-only driveways for cars, or “chipotlanes.”

The company did not provide a full-year forecast but said it expects second-quarter same-store sales to grow between 10% to 12%, assuming current trends continue. Wall Street had expected same-store sales next quarter to increase 9.3%, according to StreetAccount.

Read the full earnings report here.

This is an evolving story. Check again for updates.