This story is breaking and being updated.
Chipotle Mexican Grill (CMG) on Tuesday reported quarterly results that beat expectations, sending shares down more than 5% in after-hours trading.
In its fourth quarter results, Chipotle reported same-store sales that beat expectations as the company navigated a “challenging and fluid macro environment,” CEO Brian Niccol said in the statement.
Here’s what the California-based burrito chain reported, compared to Wall Street estimates, according to Bloomberg:
Income: $2.2 billion vs. $2.23 billion
Adjusted earnings per share: $8.29 versus $8.91 per share
Comparable store sales: up 5.6% from 7.04%
Total revenue increased by 11.25% in the last quarter. The operating margin was 13.6%, compared to 8.1% for the quarter. That figure compares to revenue of $2.23 billion in the third quarter, up 13.9% year-over-year.
Citi, which has a buy rating and price target of $1,986, calls expectations for this quarter “moderate” given “the company’s indications of negative traffic.” In the fourth quarter, foot traffic fell 10.2% from 2021, according to analytics firm Placer.ai.
Despite this, the shares since the beginning of the year are up 22.5%. In August 2022, Chipotle increased menu prices by 4%. It was the third time in 15 months.
An increase in labor costs and a surge in avocado prices (although they are now trending lower) were the main drivers of higher menu prices.
Analysts are also keeping an eye on the net quarter.
UBS’s Dennis Geiger expects “better traffic this burrito season,” which Chipotle says calls its busy season (March through May). The company has a buy rating and a price target of $1,800.
Before that, the burrito chain recently announced plans to hire 15,000 workers. This is one step in the company’s long-term goal of reaching 7,000 locations in North America.
Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email him at [email protected]
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