Chipotle CEO Brian Niccol had a lot to smile about Tuesday when he reported that Q1 earnings per share were $10.50 vs. $8.92 expected by analysts. Revenue was also up, coming in at $2.37 billion compared to the $2.34 billion expected.
“Our strong performance in the first quarter confirms that our focus on getting back to the basics and re-establishing Chipotle’s standards of excellence is beginning to drive results,” Niccol said in a company press release. “We will continue to develop exceptional people and prepare exceptional food while treasuring each guest to further strengthen our foundation for sustained long-term growth.
Shares of the company rose over 3% in extended trading.
Other highlights included:
- Total revenue increased 17.2% to $2.4 billion.
- Comparable restaurant sales increased 10.9%
- In-restaurant sales increased 22.9%, while digital sales represented 39.3% of food and beverage revenue.
- Operating margin was 15.5%, an increase from 9.4%.
- Restaurant level operating margin was 25.6% 1, an increase of 490 basis points
- Opened 41 restaurants with 34 locations including a Chipotlane.
For 2023, management is anticipating the following:
- Q2 and full-year comparable restaurant sales growth in the mid to high-single digit range.
- 255 to 285 restaurant openings (including 10 to 15 relocations to add a Chipotlane).
- An estimated underlying effective full year tax rate between 25% and 27% before discrete items.