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Chipotle Records Revenue Increases in Q1 2023 despite Menu Price Hikes, CMG Stock Up 7.8% Now
Despite increased menu prices, Chipotle Mexican Grill (NYSE: CMG) recorded impressive earnings and revenue in Q1 2023. On Tuesday, the restaurant company released its quarterly financial performance that exceeded analysts’ expectations. The chain’s shares gained 7.87% in the after-hours session after closing down 0.94% to $1,780. Except for losing a little over 1% in the last five days, Chipotle has been amassing gains for the past year. The company has increased nearly 21% in the last twelve months and another 28.29% since the year started. In addition to the surge, CMG has added 13.81% in the last three months and 7.44% over the past month. At the time of writing, Chipotle is trading at $1,920.
Chipotle Surpasses Expectations in Q1 2023
According to the Chipotle Q1 2023 results, earnings per share came in at $10.50, exceeding analysts’ expectations of $8.92. Revenue was better than the $2.34 billion predicted, as it soared 17.2 % to $2.4 billion. Also, comparable restaurant sales outstripped estimates by 10.9%. Solid same-store sales and new restaurant openings contributed to the high total revenue for the quarter. Chipotle opened 41 new restaurants in the first quarter, and 34 of them have Chipotlane – drive-thru lanes for digital order pickup. The restaurant company added that the latest developments enhance guest access, provide convenience, and fuel sales, margins, and returns.
More so, in-restaurant sales at Chipotle during Q1 2023 popped 22.9%, while digital sales represented 39.3% of food and beverage revenue. The higher menu price and lower avocado prices helped improve profit margins compared to the year-ago quarter. Chipotle said net income grew from $158.3 million a year before to $291.6 million in Q1 2023.
Chairman and CEO Brian Niccol said that Chipotle has demonstrated that it has pricing power with its solid performance in Q1 2023. He added that the focus on re-establishing the chain’s “standards of excellence” is becoming evident and driving better results.
“We will continue to develop exceptional people and prepare exceptional food while treasuring each guest to further strengthen our foundation for sustained long-term growth.”
Additionally, Chipotle repurchased $131.6 million of stock in the last quarter. It bought each share at an average price of $1,552.90, and the company said it has $282.3 million remaining for more repurchases as of March 31, 2023.
Following a better-than-expected Q1 2023, Chipotle looks forward to continued sales growth in the second quarter and the full year. 2023 The company expects comparable sales growth to move from the mid to high-single-digit range. Also, the chain plans to expand from 255 restaurant openings to 285. It will also include Chipotlanes in some outlets.
Fast-food chain McDonald’s (NYSE: MCD) also saw earnings growth in the first quarter of the year despite pricier menus.
Chipotle Records Revenue Increases in Q1 2023 despite Menu Price Hikes, CMG Stock Up 7.8% Now
