A customer holds a bag of food outside a Chipotle restaurant on January 12, 2024 in New York.
Angus Mordaunt | Bloomberg | Getty Images
Chipotle Mexican Grill on tuesday Report various quarterly financial results Even though foot traffic to restaurants increased by another quarter.
The company’s shares fell 3% in extended trading.
Here’s how the company reported compared to Wall Street expectations, based on a survey of analysts by LSEG.
- Earnings per share: adjusted 27 cents, forecast 25 cents
- Revenue: $2.79 billion vs. $2.82 billion expected.
Chipotle reported third-quarter net income of $378.4 million, or 28 cents per share, up from $313.2 million, or 23 cents per share, in the year-ago period.
The company’s food and beverage costs increased in the quarter, in part due to Chipotle’s decision to reemphasize hearty offerings after social media backlash over the size of its burrito bowls this summer. .
Excluding items, the company earned 27 cents per share.
Sales Sales rose 13% to $2.79 billion.
Same-store sales rose 6%, slightly below StreetAccount’s estimate of 6.3%. Restaurant traffic increased 3.3% in the quarter, continuing the chain’s streak of defying an industry-wide decline in foot traffic. With many consumers choosing to eat out less, Chipotle is benefiting from having an affluent customer base willing to pay more for a burrito or bowl.
“We’re seeing growth across all income groups at this point,” Interim CEO Scott Boatright said on CNBC’s “Closing Bell: Overtime” on Tuesday.
Demand was weak at the beginning of the third quarter, but sales accelerated throughout the period, especially after Chipotle reintroduced smoked brisket, Boatwright said. The limited-time menu is currently the most expensive protein available, surpassing the chain’s steak and beef barbacoa options.
Boatwright, Chipotle’s former chief operating officer, took the helm after former CEO Brian Nicol left in late August for a pilot. starbucks‘ turn around. Boatwright reassured investors on Tuesday’s conference call that the chain’s strategy remains the same despite the management shakeup.
“I have worked with our talented management team to develop and evolve our company’s success strategy, and we will continue to do so,” he said.
Digital sales accounted for 34% of the chain’s food and beverage revenue for the quarter.
The company opened 86 new stores during the quarter, 73 of which included Chipot Lanes, which are dedicated to online order pickup.
Chipotle is also investing in new equipment to improve cooking and preparation. The company plans to introduce the new produce slicer to all restaurants by next summer. Chipotle is also installing double-sided grills in 74 restaurants and plans to announce a strategy to add the equipment to new and existing restaurants early next year.
Chipotle reiterated its outlook for full-year same-store sales growth in the mid to high single digits. The company also expects to open 285 to 315 new restaurants this year.
Looking ahead to 2025, Chipotle plans to open between 315 and 345 new locations. More than 80% of these restaurants will include Chipotlanes.
