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Mar 31, 2023
Chipotle Q1 2023 Earnings Report
Chipotle's first quarter results for 2023 were announced, featuring a 93.3% increase in operating income and a 10.9% rise in comparable restaurant sales, driven by margin expansion.
Key Takeaways
Chipotle Mexican Grill, Inc. reported strong first quarter 2023 results, with total revenue increasing by 17.2% to $2.4 billion and comparable restaurant sales up by 10.9%. Diluted earnings per share reached $10.50, reflecting an 84.2% increase compared to the prior year. The company opened 41 new restaurants, including 34 Chipotlanes, and saw its operating margin increase to 15.5%.
Total revenue increased 17.2% to $2.4 billion.
Comparable restaurant sales increased 10.9%.
In-restaurant sales increased 22.9%, while digital sales represented 39.3% of food and beverage revenue.
Diluted earnings per share was $10.50, an 84.2% increase.
Chipotle
Chipotle
Forward Guidance
For 2023, management anticipates second quarter and full year comparable restaurant sales growth in the mid to high-single digit range, between 255 to 285 new restaurant openings and an estimated underlying effective full year tax rate between 25% and 27% before discrete items.
Positive Outlook
- Comparable restaurant sales growth in the mid to high-single digit range for the second quarter and full year.
- 255 to 285 new restaurant openings are expected.
- Includes 10 to 15 relocations to add a Chipotlane.
- An estimated underlying effective full year tax rate between 25% and 27% before discrete items.
Challenges Ahead
- Guidance assumes utility, construction, permit and material supply delays do not worsen.
- Uncertainty regarding the resurgence of COVID-19 infections and its ultimate impact on our business.
- Increasing wage inflation and the competitive labor market, which impacts our ability to attract and retain qualified employees and has resulted in occasional staffing shortages.
- Increasing supply costs (including beef, avocados and packaging).
- The uncertainty of our ability to achieve expected levels of comparable restaurant sales due to factors such as changes in consumers' perceptions of our brand.