Chipotle posts record sales | Fast Casual
Chipotle broke its record for quarterly sales, reporting Thursday that comparable restaurant sales were up 15% and revenues jumped 22% in the third quarter. Earnings per share were $ 7.02, crushing analysts’ forecast of $ 6.32.
“Chipotle’s third quarter results demonstrate strong momentum in our business, fueled by a multi-pronged strategy and a passionate team that is excited to welcome more customers to our restaurants,” said Brian Niccol, President and CEO , in a company press release. “Our team has a proven ability to be resilient and successfully execute macro complexities. As a result, I think we are in a better position than ever to generate long-term, sustainable growth, which makes me excited about what we can accomplish over the years. before.”
Highlights for the third quarter, year over year, include:
- Total revenue increased 21.9% to $ 2 billion.
- Comparable restaurant sales increased 15.1%.
- Digital sales grew 8.6% and accounted for 42.8% of sales.
- The operating margin was 12.3%, up from 6.7%.
- The operating margin at the restaurant level was 23.5% 1, an increase of 400 basis points.
- Diluted earnings per share was $ 7.18, an increase of 154.6% from $ 2.82. Excluding a net after-tax impact of $ 0.16 resulting from a tax benefit, which was partially offset by certain stock-based compensation charges, company restructuring costs, depreciation and closing costs. restaurant assets and certain other expenses, adjusted diluted earnings per share was $ 7.02, an 86.7% increase from $ 3.76 1.
- Opening of 41 restaurants including 2 moves.
For 2021, management plans to:
- Comparable restaurant sales growth in the fourth quarter in the low to mid double-digit range.
- At or slightly above 200 new restaurant openings.
- An estimated underlying effective tax rate in the fourth quarter of between 25% and 27% before discrete items.
While beef and freight costs also increased, the chain increased menu prices by 4% in June, helping to offset not only those costs, but the cost of increasing workers’ wages as well. at an average of $ 15 an hour.