Chipotle Mexican Grill, Inc. (NYSE: CMG) on Thursday announced third quarter earnings beat analysts’ estimate, sending the shares up 3.5% in the early trading on Friday.
The Company reported revenue rose 8.6% to USD 1.2 Billion in the quarter ended September 30, 2018, in line with analysts’ estimates. The increase in revenue was driven by new restaurant openings and a 4.4% increase in comparable restaurant sales. Digital sales jumped 48.3% in the third quarter, accounting for 11.2% of sales.
Restaurant level operating margin was 18.7%, an increase from 16.1%. Food, beverage and packaging accounted for 33.4% of revenue,
Third-quarter net income was USD 38.2 Million, or $1.36 per share, compared to USD 19.6 Million, or 69 cents per share a year ago. Excluding certain items, the Company earned $2.16 per share, beating analysts’ estimates of $2,00 per share.
However, same-store sales increase 4.4% in the third quarter, weaker than analysts’ expectation of 5% increase.
Chipotle shares rose 2.34% in the early trading on Friday. The stock was up about 47% this year.
“Chipotle’s strategy to win today and cultivate a better future is taking hold and I’m pleased to report our third quarter results with strong sales growth and restaurant margin expansion over last year,” said Brian Niccol, chief executive officer. “We made important progress during the quarter with the introduction of our ‘For Real’ marketing strategy and I’m encouraged by the progress we are making in building a pipeline of customer focused innovation, driving digital sales, elevating our restaurant operations and effectively executing our reorganization.”