Chipotle shares fall after missing on top and bottom lines in fourth quarter
- Indexes jump on inflation data; Nasdaq posts best qtr since 2020
- EPS recession is coming; Citi upgrades US equities, Tech to Overweight
- Eurozone inflation slows by more than expected in March
- Micron (MU) drops as China launches cybersecurity review of its products
- Netflix to rein in movie output, slash jobs in restructuring push - Bloomberg
Get Alerts CMG Hot Sheet
EPS Growth %: +55.8%
Food, beverage and packaging: 363.9M
Today's EPS Names:
BVS, ASTS, CMCT, More
Join SI Premium – FREE
Investing.com -- Chipotle Mexican Grill Inc (NYSE: CMG) shares were falling more than 4% in after-hours earnings after the burrito chain missed expectations on the top and bottom line for the recent quarter.
Adjusted earnings per share of $8.29 missed the expectation for $8.92 a share. Revenue of $2.18 billion fell slightly short of the expectation for $2.2B. Same-store sales rose 5.6%, short of the 6.9% expected.
Revenue was up 11.2% from the fourth quarter 2021, driven by comparable store sales and new store openings. Chipotle said in-restaurant sales increased 17.5% in the fourth quarter from the year earlier, and digital sales made up 37.4% of total food and beverage revenue.
"We delivered strong growth in 2022, expanding average unit volumes and restaurant level margin, while opening the highest number of new restaurants in six years, despite facing a challenging and fluid macro environment," said CEO Brian Niccol.
Among the quarter’s highlights, Chipotle pointed to 100 new restaurant openings, including 90 locations with its drive-through Chipotlanes. “These formats continue to perform well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins, and returns,” the company said.
Fourth-quarter food, beverage and packaging costs were 29.3% of total revenue, a decline from the prior year. Chipotle raised menu prices, and said lower avocado prices also helped partially offset higher costs for dairy and tortillas.
For the year, total revenue rose 14.4% to $8.6B, while comparable store sales rose 8%. In-restaurant sales rose 26.4% for the year, and digital sales made up 39.4% of food and beverage revenue.
For 2023, the company is projecting first-quarter comparable restaurant sales growth in the high-single digits. It also sees 255 to 285 new restaurant openings this year, including as many as 15 with a Chipotlane.
It also announced it would buy back an additional $200 million of shares.
You May Also Be Interested In
- Virgin Orbit, Bed Bath&Beyond and Nikola fall premarket; ELF Beauty rises
- Virtra Systems, Inc. (VTSI) Tops Q4 EPS by 13c
- Creative Media & Community Trust Corporation (CMCT) Misses Q4 EPS by 24c
Create E-mail Alert Related CategoriesEarnings, Hot List
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!