Loading...
•
Sep 30, 2023
Chipotle Q3 2023 Earnings Report
Chipotle's Q3 2023 earnings increased driven by comparable sales growth and margin expansion.
Key Takeaways
Chipotle Mexican Grill reported an 11.3% increase in total revenue to $2.5 billion, driven by new restaurant openings and a 5.0% increase in comparable restaurant sales. Diluted earnings per share increased by 23.0% to $11.32, and adjusted diluted earnings per share increased by 19.5% to $11.36.
Total revenue increased 11.3% to $2.5 billion.
Comparable restaurant sales increased 5.0%.
Operating margin was 16.0%, an increase from 15.1%.
Diluted earnings per share was $11.32, a 23.0% increase from $9.20.
Revenue by Segment
Forward Guidance
Chipotle anticipates fourth quarter and full year comparable restaurant sales growth in the mid to high-single digit range and expects 255 to 285 new restaurant openings.
Positive Outlook
- Fourth quarter and full year comparable restaurant sales growth in the mid to high-single digit range
- 255 to 285 new restaurant openings (including 10 to 15 relocations to add a Chipotlane)
- Assumes utility, construction, permit and inspection delays do not worsen
- Estimated underlying effective full year tax rate between 25% and 27% before discrete items
- 285 to 315 new restaurant openings in 2024
Challenges Ahead
- Increasing wage inflation and the competitive labor market
- Impact of any union organizing efforts
- Increasing supply costs (including beef, tortillas, queso, salsa, beans and rice)
- Risks of food safety incidents and food-borne illnesses
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...