Saturday May 28, 2022

Chipotle earnings: Sales and profit rise despite inflation, as it adds locations

Chipotle Mexican Grill said Tuesday that its profit and revenue rose as it opened new locations and saw increased sales in the first quarter.

The fast-food restaurant chain said its comparable-restaurant sales were up 9% year over year and that it opened 51 new restaurants.

Chief Executive Brian Niccol said in a statement that the company’s “performance in the first quarter was strong, despite challenges from the omicron variant and ongoing inflation,” which the company said ate into its costs.

Chipotle CMG,
shares see-sawed after hours, last down 1.2% after an initial 2% gain, after falling more than 5% in the regular session to close at $1,438.21.

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The company reported first-quarter net income of $158.3 million, or $5.59 a share, up from $127.1 million, or $4.45 a share, in the first quarter of 2021. Adjusted earnings were $161.4 million, or $5.70 a share, adjusted for stock-based compensation, restructuring costs and more. Revenue increased 16% to $2 billion from $1.74 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast adjusted of $5.64 a share on earnings of $2 billion.

Shares of the Newport Beach, Calif.-based company have fallen nearly 18% so far this year, while the S&P 500 Index SPX,
has fallen about 12% year to date.

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