Chipotle Revenues Rise 16%, Plans to Add 235-250 Restaurants
- Scott Peters
- U.S.A. New York City
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Chipotle Mexican Grill, Inc said higher labor and food costs were offset by price increases across the menu. Comparable restaurant sales increased 9% and digital sales account for 42% of total food and beverage sales.
Chipotle Mexican Grill Inc reported first-quarter 2022 revenues rose 16% to $2 billion, net income increased 24.4% to $158.2 million, and earnings per share increased to $5.59 from $4.45 a year ago.
Comparable restaurant sales increased 9% and digital sales increased to 41.9% of total food and beverage revenues.
Restaurant-level operating margin declined 106 basis points to 20.7% and operating margin for the company increased to 9.4% from 9.3%.
Operating margins at the restaurant-level declined on higher wages and higher food prices for beef, avocado, and paper costs.
Food, beverage and packaging costs in the first quarter were 31.0% of total revenue, an increase of 100 basis points from a year ago.
The restaurant chain opened 51 new restaurants during the first quarter with 42 locations including a Chipotlane.
Guidance and Outlook
The company plans to open between 235 and 250 new restaurants in the second quarter and guided comparable same store sales in the range between 10% and 12%.
- Second quarter comparable restaurant sales growth, assuming current sales trends continue, in the 10% to 12% range
- Between 235 to 250 new restaurant openings (including 5 to 10 relocations to add a Chipotlane), which assumes construction and permit delays don't worsen
- An estimated underlying effective full year tax rate between 25% and 27% before discrete items.
For 2022, management is anticipating the following:
During the quarter, our Board of Directors approved the investment of up to an additional $300 million, exclusive of commissions, to repurchase shares of our common stock, subject to market conditions.
Including this repurchase authorization, $280.8 million was available as of March 31, 2022. The repurchase authorization may be modified, suspended, or discontinued at any time.
We repurchased $260.1 million of stock at an average price per share of $1,490 during the first quarter.
Annual Returns
| Company | Ticker | 2025 | 2024 | 2023 |
|---|---|---|---|---|
| Chipotle Mexican Grill Inc | CMG | -32% | 32% | -97% |