Chipotle earnings crush estimates as sales jump 22%, higher menu prices offset rising costs

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

David Paul Morris | Bloomberg | Getty Images

Chipotle Mexican Grill on Thursday reported quarterly earnings that crushed Wall Street’s estimates as its menu price increases helped the chain weather higher costs.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $7.02 adjusted vs. $6.32 expected
  • Revenue: $1.95 billion vs. $1.94 billion expected

The company reported fiscal third-quarter net income of $204.4 million, or $7.18 per share, up from $80.2 million, or $2.82 per share a year earlier. Beef and freight costs were higher, but menu price hikes offset the impact of those increased expenses.

Excluding a tax benefit, restructing costs and other items, Chipotle earned $7.02 per share, topping the $6.32 per share expected by analysts surveyed by Refinitiv.

Net sales rose 21.9% to $1.95 billion, beating expectations of $1.94 billion. Same-store sales climbed 15.1%, topping StreetAccount estimates of 14%.

Digital sales increased by 8.6% after more than tripling a year ago.

Looking ahead to the fourth quarter, the company is projecting same-store sales growth in the low-to-mid double-digits range. Chipotle did note several uncertainties weighing on the business, like inflation, staffing pressures and Covid-19.


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