Chipotle Mexican Grill (CMG) Q3 2021 earnings beat

A customer carries a Chipotle Mexican Grill Inc. bag outside a restaurant in San Francisco, California, United States on Monday, July 20, 2020.

David Paul Morris | Bloomberg | Getty Images

Chipotle Mexican Grill on Thursday reported quarterly earnings that drove Wall Street estimates as menu price increases helped the chain absorb higher costs.

The company’s shares rose more than 1% in expanded trading.

Here’s what the company said, relative to Wall Street expectations, based on an analyst survey by Refinitiv:

  • Earnings per share: $ 7.02 adjusted versus $ 6.32 expected
  • Revenue: $ 1.95 billion versus an expected $ 1.94 billion

The company reported net income of $ 204.4 million, or $ 7.18 per share, for the third quarter, compared to $ 80.2 million or $ 2.82 per share a year earlier.

Beef and freight costs were higher, but menu price increases offset the effects of those increased spending. In June, the chain announced that menu prices would increase by about 4% to cover the cost of increasing restaurant workers’ wages to an average of $ 15 an hour.

Excluding tax breaks, restructuring charges, and other items, Chipotle earned $ 7.02 per share, beating the $ 6.32 per share analyst survey surveyed by Refinitiv had expected.

Net sales rose 21.9% to $ 1.95 billion, beating expectations of $ 1.94 billion. Sales in the same store rose 15.1%, beating StreetAccount’s estimate of 14%.

Digital sales rose 8.6% after more than tripling a year ago. The company’s loyalty program has gained 24.5 million members in two and a half years, helping Chipotle learn more about its customers and encourage more frequent visits.

“There’s no doubt that the loyalty program has moved from crawling to walking, and we still have plenty of room to grow,” said CEO Brian Niccol on the conference call.

At the end of the quarter, the chain Smoked breast introduced as a time-limited menu option. Due to the strong demand, the item’s availability will end a little earlier than originally planned in November. Under Niccol, who previously directed Yum Brands’ Taco Bell has accelerated the process of adding new menu items through a process it calls stage-gate testing. The chain has been strategic with new releases and many of them have limited time options to drive customer traffic to their restaurants and keep the menu from bloating.

The company opened 41 new restaurants in the quarter. Only five of these locations did not have a “Chipotlane”, a drive-through lane intended for the collection of digital orders. Executives said the company is still facing inflation in building materials, shortages in labor and equipment from subcontractors, and delivery delays from landlords.

Looking ahead to the fourth quarter, the company is forecasting low to mid double-digit revenue growth in the same business. Chipotle noted several uncertainties weighing on the business, such as inflation, workforce pressures, and Covid-19.

“Despite these challenges, we remain confident that we can increase the margins in the restaurant with increasing average quantities,” said CFO Jack Hartung.

Chipotle also announced that its board of directors has approved an additional $ 100 million in share buybacks, bringing its total approval to $ 209.8 million as of September 30th. The company repurchased $ 98.7 million in shares in the third quarter.

Read the full announcement of the results here.

Chipotle Mexican Grill (CMG) Q2 2021 earnings

A person wearing a protective mask and gloves leaves a Chipotle restaurant in San Francisco, California on April 19, 2021.

David Paul Morris | Bloomberg | Getty Images

Chipotle Mexican Grill on Tuesday reported quarterly revenue surpassing pre-pandemic levels as customers returned to restaurants.

The company also released a third quarter revenue forecast.

Shares rose nearly 5% in extended trading.

Here’s what the company said, relative to Wall Street expectations, based on an analyst survey by Refinitiv:

  • Earnings per share: $ 7.46 adjusted versus $ 6.52 expected
  • Revenue: $ 1.89 billion versus an expected $ 1.88 billion

Chipotle reported net income of $ 188 million, or $ 6.60 per share, for the second quarter, compared to $ 8.2 million, or 29 cents per share, last year. Food and beverage costs were down almost 3% year over year due to menu price increases and lower beef prices.

With no disruption to restaurant facilities, shutdown costs, and other items, the burrito chain earned $ 7.46 per share, beating the $ 6.52 per share analysts surveyed by Refinitiv had expected.

Net sales rose 38.7 percent to $ 1.89 billion, beating expectations of $ 1.88 billion. Sales in the same store increased by 31.2%. A year ago, the company’s sales in the same store fell more than 9% after the lockdown hurt demand.

After online orders skyrocketed last year, Chipotle saw slow growth for this part of its business. Digital sales grew 10.5%, accounting for 48.5% of the company’s quarterly sales. In the first quarter, Chipotle’s online orders overtook in-person sales for the first time.

“I suspect the percentage will likely go down a bit when the dining rooms return,” CEO Brian Niccol said on CNBCs “Final bell” on Tuesday. “What I’m watching are the absolute dollars we make in our digital business.”

Niccol said dining room traffic is about 70% of the 2019 level, while the company is holding about 80% of the gains in its digital orders. He also said customers are returning for lunch.

Chipotle opened 56 new locations and closed five restaurants in the quarter.

Looking to the third quarter, assuming current trends continue, the company forecasts low to mid double-digit sales growth in the same business. In the third quarter of 2020, sales in the same store rose 8.3%. Niccol said the Delta Covid variant has not yet affected consumer behavior.

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Cramer counts Chipotle, Darden as ‘final man standing’ restaurant performs

CNBC’s Jim Cramer on Monday released a list of stocks he expects to benefit from the “last man standing scenario”.

“After a year of slaughter, large, pocket-sized companies triumph over smaller competitors who failed.”Bad money“Host said.

The scenario will play out briskly in the restaurant industry, Cramer said.

Last year, in the middle of the Covid-19 pandemic, there were more than 110,000 eating and drinking establishments shut down temporarily or permanently. The impact resulted in the loss of 2.5 million jobs in the industry, according to the National Restaurant Association.

Coronavirus restrictions in New York City also pushed Cramer to close the doors of his two Brooklyn neighborhood restaurants until coronavirus vaccines spread and the U.S. health crisis came under control.

“As the owner of some restaurants, I can tell you that businesses like them Darden and Chipotle now take part in empty shop windows, “he said.

Alongside Chiptole and Darden, Olive Garden’s parent company, Cramer pointed this out Cheesecake factory, Yum Brands, Texas Roadhouse and Starbucks as a beneficiary of the current environment.

“Now that tens of thousands of small businesses have gone down so sadly and unfortunately, their bigger rivals are the last of the men, which means they will make a fortune as the country reopens because there is no one left to challenge them.” “”