Chipotle Mexican Grill’s restaurant traffic grows as the chain proves its pricing power

Business

In this article

Pedestrians wearing protective masks walk in front of a Chipotle restaurant in San Francisco, California, April 19, 2021.
David Paul Morris | Bloomberg | Getty Images

Chipotle Mexican Grill is expected to report its first-quarter results after the bell on Tuesday.

Here’s what Wall Street is expecting the company to report, based on a survey of analysts by Refinitiv:

  • Earnings per share: $8.92 expected
  • Revenue: $2.34 billion expected

Last quarter, Chipotle fell short of Wall Street’s estimates for its quarterly earnings and revenue for the first time since the third quarter of 2017. When announcing the results in February, executives blamed its weak performance on softer holiday sales and an underperforming limited-time menu item. The company said its January same-store sales climbed by low double-digits as it faced comparisons to a year ago when omicron outbreaks closed many of its restaurants.

Investors’ focus will be on whether the burrito chain managed to continue its rebound into February and March — or if its underwhelming fourth quarter was a warning sign. Wall Street is expecting the company to report same-store sales growth of 8.6%.

Executives haven’t provided an outlook for 2023 same-store sales growth, noting the possibility of a recession, but said that same-store sales will likely moderate in the second and third quarter.

Shares of Chipotle have risen 18% this year, giving it a market value of about $49.6 billion.

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *