Chipotle Posts Better-than-Expected Earnings

Chipotle Posts Better-than-Expected Earnings

Chipotle Mexican Grill (NYSE: CMG) shares rose 8% during extended trading on Tuesday after it disclosed quarterly earnings, which surpassed analyst expectations. Its growth was incentivized by the digital boom, responsible for almost 42% of sales.

The California-based company reported earnings of USD5.58 per share, compared to the expected USD5.25 a share. Revenue amounted to USD1.96 Billion, the same as analysts had anticipated. Furthermore, Chipotle reported a fourth-quarter net income of USD133.48 Million.

“2021 was an outstanding year for Chipotle, highlighting the strength and resiliency of our brand. Together, we accomplished many incredible things as our passionate employees remained dedicated to delivering excellent guest experiences, aligned with our purpose and values,” said Brian Niccol, Chairman and Chief Executive Officer, Chipotle. “Moving forward, we believe expanding access and convenience through our digital ecosystem, accelerating unit growth, and continuing to develop and support our restaurant employees, will put us in a much stronger competitive position.”

According to Niccol, the company has raised menu prices by 6% throughout 2022 and customers have also begun to pay about 10% more for their orders in comparison to the previous year. Niccol disclosed that customers had not been resistant to the increasing prices as of yet.

During Q4, the company opened 78 new restaurants with 67 of those featuring Chipotlanes. In 2021, the company opened 215 new locations, rounding up the total to 2,996. There are now a total of 355 Chipotlanes.

Chipotle highlighted that its designs continued “to perform very well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins, and returns.”

Opt-into our eNewsletter NOW! For the Latest Trending Financial News Topics in Cannabis, Tech, Biotechs, Precious Metals, Energy, Renewable Energy and much more!