Chipotle Q3 Earnings Highlights: Revenue Miss, EPS Beat, Store Guidance Update, 'Strong Results Led By Transaction Growth'
Chipotle Mexican Grill (CMG)
Restaurant chain reports Q3 results
Chipotle Mexican Grill (CMG) reported its third-quarter financial results on October 25, 2022, which revealed a revenue miss but an earnings per share (EPS) beat. Total revenue for the quarter was $2.2 billion, falling short of analysts' estimates of $2.24 billion. However, the company reported EPS of $9.13, exceeding the consensus estimate of $8.94.
Store guidance update
In addition to its financial results, Chipotle also provided an update on its store growth plans. The company now expects to open between 235 and 250 new restaurants in 2023, lower than its previous guidance of 250 to 265. The revised guidance reflects the company's ongoing focus on operational excellence and restaurant-level profitability.
Strong results driven by transaction growth
Despite the revenue miss, Chipotle highlighted the strength of its business, driven by transaction growth. Comparable restaurant sales increased by 7.6% in the quarter, marking the company's 16th consecutive quarter of comparable sales growth. The company attributed this growth to increased customer visits and higher average order values.
Commentary from management
Chipotle CEO Brian Niccol commented on the company's performance, stating, "We are pleased with our strong results in the third quarter, led by transaction growth. Our continued focus on operational excellence and innovation is driving customer loyalty and delivering industry-leading returns for our shareholders."
Financial highlights
- Total revenue: $2.2 billion (missed estimates of $2.24 billion)
- Comparable restaurant sales growth: 7.6%
- Earnings per share (EPS): $9.13 (beat estimates of $8.94)
- Store guidance update: 235-250 new restaurant openings expected in 2023
Conclusion
Chipotle's Q3 earnings report shows the company's continued growth and resilience amidst a challenging economic environment. Despite missing revenue estimates, the company beat EPS estimates and provided a positive outlook for the future.
