Chipotle Mexican Grill Reports Third-Quarter Financial Results

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Chipotle Mexican Grill Reports Third-Quarter Financial Results

Chipotle Mexican Grill, commonly known as CMG, disclosed its financial performance for the third quarter, unveiling revenue figures that totaled $2.79 billion, reflecting a 13% surge from the same period the year before. Despite missing the consensus estimate of $2.82 billion, the company's adjusted earnings stood at 27 cents per share, surpassing the Street's prediction of 25 cents per share. The growth in comparable restaurant sales by 6% was attributed to a rise in both transactions and average check values, as indicated by the company.

A noteworthy aspect of Chipotle's third-quarter results was the substantial contribution of digital sales, comprising 34% of the total food and beverage revenue during that period. The company's operating margin was reported at 16.9%, with a restaurant level operating margin of 25.5%. In terms of expansion, CMG added 86 new company-operated restaurants and one international licensed restaurant during the quarter, with 73 of the new locations featuring a Chipotlane, emphasizing the brand's focus on enhancing customer experience and convenience.

Chipotle's interim CEO, Scott Boatwright, attributed the strong results achieved in the quarter to the company's emphasis on exceptional people, food quality, and efficient service, with the reintroduction of Smoked Brisket playing a significant role. Looking ahead, Chipotle's guidance anticipates mid-to-high-single-digit growth in restaurant sales for the full fiscal year, along with plans to open 285 to 315 new company-operated restaurants, with a high percentage incorporating the Chipotlane drive-thru concept. Boatwright reiterated the importance of the company's employees and outlined a long-term goal of expanding to 7,000 restaurants in North America while evolving into a more global brand. As a result of the quarterly report, Chipotle stock experienced a 6.05% decline in after-hours trading, currently priced at $56.83 per share.