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Sep 30, 2022

Chipotle Q3 2022 Earnings Report

Chipotle's Q3 2022 performance showcased strong brand resilience and value proposition amidst economic challenges, driven by comparable restaurant sales increase and margin expansion.

Key Takeaways

Chipotle Mexican Grill, Inc. reported a 13.7% increase in total revenue, reaching $2.2 billion in the third quarter of 2022. Comparable restaurant sales increased by 7.6%, and diluted earnings per share rose to $9.20, marking a 28.1% increase year over year.

Total revenue increased by 13.7% to $2.2 billion.

Comparable restaurant sales increased by 7.6%.

In-restaurant sales increased by 22.1%, with digital sales accounting for 37.2% of food and beverage revenue.

Diluted earnings per share increased by 28.1% to $9.20.

Total Revenue
$2.22B
Previous year: $1.95B
+13.7%
EPS
$0.19
Previous year: $0.14
+35.7%
Comparable Sales Increase
7.6%
Previous year: 15.1%
-49.7%
Net Restaurant Openings
43
Previous year: 41
+4.9%
Gross Profit
$563M
Previous year: $459M
+22.5%
Cash and Equivalents
$367M
Previous year: $721M
-49.2%
Free Cash Flow
$213M
Previous year: $172M
+23.5%
Total Assets
$6.82B
Previous year: $6.63B
+2.9%

Chipotle

Chipotle

Forward Guidance

Chipotle anticipates fourth quarter comparable restaurant sales growth in the mid to high-single digits and between 235 to 250 new restaurant openings for 2022. For 2023, the company anticipates 255 to 285 new restaurant openings.

Positive Outlook

  • Fourth quarter comparable restaurant sales growth in the mid to high-single digits
  • Between 235 to 250 new restaurant openings (including 10 to 15 relocations to add a Chipotlane)
  • New restaurant formats continue to perform very well.
  • New restaurant formats are helping enhance guest access and convenience.
  • New restaurant formats are helping increase new restaurant sales, margins, and returns.

Challenges Ahead

  • Anticipates construction, permit and material supply delays don’t worsen.
  • Increasing wage inflation and the competitive labor market.
  • 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.
  • Decreased consumer spending (including as a result of the increase in inflation, fear of possible recession and higher gas prices).