Chipotle reported third-quarter revenue of $3.29 billion, up 9.6%, with comparable sales up 2.1% against a 1.4% estimate, but adjusted profit of 27 cents per share fell short of the 29-cent estimate.
Chipotle reported third-quarter revenue of $3.29 billion on October 28, up 9.6% from a year earlier, with profit of $339.9 million. Comparable restaurant sales rose 2.1%, above the 1.4% average estimate compiled by LSEG, while adjusted profit was 27 cents per share against an average estimate of 29 cents.
Reuters attributed the sales result to value deals, marketing and limited-time offerings, including Chipotle Honey Chicken, and to demand from health-conscious and younger customers for protein-rich, less-processed meals such as burrito bowls and salads. Higher input costs, including labour, transport and ingredients such as beef, pressed on earnings even as sales grew. The company reaffirmed its annual forecast for comparable restaurant sales to rise in the low single-digit range.
Chief executive Scott Boatwright said broader consumer and industry headwinds may continue, but that initiatives across the company's recipe for growth strategy were building and giving it more tools to win in any environment. Shares rose in extended trading after the release, according to Reuters, although reports differed on the size of the move as trading developed.
The Associated Press snapshot and the Reuters account agree on the core split in the quarter: revenue in line with expectations and profit short of them, with comparable sales ahead of estimates. The Reuters reporting adds the LSEG estimate for comparable sales and the cost pressures behind the profit miss, which the snapshot does not break out. No figure in either account suggests the sales beat came from price rises alone, and neither account gives a breakdown of traffic against menu prices.
The quarter is a useful read on US consumer spending because it pairs resilient demand for a familiar chain with the cost pressures facing restaurants. The next check will be fourth-quarter comparable sales against the reaffirmed low single-digit full-year forecast, and whether input costs ease enough for profit to catch up with sales.