Chipotle Mexican Grill (NYSE:CMG) has reported a strong rise in first-quarter revenue and earnings as it opened new restaurants and focused on getting back to basics.
The fast-casual restaurant chain grew first-quarter revenue by 17% to $2.4 billion, with comparable restaurant sales increasing by 11%. Over the three months to March 31, 2023, it opened 41 new restaurants with 34 locations including a drive-thru Chipotlane.
Adjusted diluted earnings per share (EPS) came in 84% higher at $10.50, beating Wall Street estimates for EPS of $8.89.
"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," chairman and CEO Brian Niccol said in an earnings statement. "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.”
For full-year 2023, Chipotle has guided for comparable restaurant sales growth in the mid to high-single digits.
It plans to open 255 to 285 new restaurants, including 10 to 15 relocations to add a Chipotlane.
The company’s shares were 8.6% higher at $1,955.80 in early New York trade.
Contact the author at stephen.gunnion@proactiveinvestors.com