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Chipotle Misses Earnings Estimates

Chipotle Mexican Grill reported its quarterly earnings on Tuesday, with the restaurant franchise’s financial results missing Wall Street estimates in a move that sent stocks in the company down 5%.

Revenue for the period was $2.2 billion, just shy of analysts’ estimates of $2.23 billion. Adjusted earnings per share were $8.29 compared to an estimated $8.91. While the company experienced a 5.6% rise in same-store sales, this figure still fell short of Wall Street estimates of 7.04%.

For the quarter ending December 31, 2022, Chipotle’s revenue increased by 11.2%, with in-restaurant sales surging by 17.5%. This rise was driven by both same-store sales and the opening of new locations. During the fourth quarter, Chipotle opened 100 new restaurants, with 90 of them including the company’s new Chipotle drive-thru concept.

The company reported an operating margin of 13.6% for the period, narrowly missing estimates of 14.7%. Foot traffic compared to the same period in 2021 declined by 10.2%.

Food, packaging, and beverage costs weighed down on Chipotle’s profits for the period, accounting for 29.3% of the company’s total Q4 revenue.

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