Chipotle Mexican Grill (CMG) Q3 2023 earnings

Food is served at a Chipotle restaurant on in Chicago, Illinois.

Scott Olson | Getty Images

Chipotle Mexican Grill on Thursday reported quarterly earnings that beat expectations, helped by higher menu prices for its burritos and bowls.

Shares of the company rose more than 5% in extended trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:

  • Earnings per share: $11.36 adjusted vs. $10.55 expected
  • Revenue: $2.47 billion, in line with expectations

The burrito chain reported third-quarter net income of $313.2 million, or $11.32 per share, up from $257.1 million, or $9.20 per share, a year earlier. Excluding corporate restructuring costs, Chipotle earned $11.36 per share.

Beef and queso costs rose this quarter, largely offsetting last year’s menu price hikes. Earlier this month, Chipotle raised menu prices for the first time in more than a year, citing inflation.

The company had paused its aggressive price hikes earlier this year as consumers pulled back their restaurant spending. Still, CEO Brian Niccol has maintained that Chipotle has pricing power and more room to run.

Net sales climbed 11.3% to $2.47 billion. Same-store sales rose 5%, beating StreetAccount estimates of 4.6%. The company credited higher transactions and menu prices for the quarter’s same-store sales growth.

Chipotle opened 62 new restaurants during the quarter. All but eight of those locations featured a “Chipotlane,” a drive-thru lane reserved for picking up digital orders.

Looking to 2024, the company expects that it will open 285 to 315 new restaurants.

Chipotle also reiterated its forecast for 2023 same-store sales growth in the mid-to-high single digit range.

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