Chipotle Mexican Grill (NYSE:CMG) shares jumped in after-hours trading on Thursday as the quick-service Mexican restaurant chain posted an earnings beat for the third quarter.
For the three months ended September 30, it reported earnings per share (EPS) of $11.36, up 19.5% from the same period in 2022. This topped Wall Street estimates of $10.46.
Revenue grew 11.3% year-over-year to $2.5 billion, topping analysts’ forecast of $2.47 billion.
Comparable restaurant sales increased 5%, in line with Chipotle’s guidance of comparable restaurant sales growth in the low to mid-single-digit range.
Revenue growth was attributed to new restaurant openings, with 62 new locations opening during the quarter, and the increase in comparable sales to higher transactions and an increase in the average check.
The restaurant chain noted that its food, beverage, and packaging costs decreased to 29.7% of total revenue and its menu price increases were mostly offset by inflation across food costs, namely beef and queso.
Chipotle shares had added 5.2% at US$1,900 shortly after the release of the company’s 3Q results.
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