Chipotle Stock Is Sizzling On Q3 Earnings: Revenue Beat, Comparable Sales Jump 5%, Operating Margin Shines

Chipotle Mexican Grill Inc CMG reported third-quarter financial results Thursday after the close. Here are the key highlights from the quarter.

Q3 Earnings: Chipotle said third-quarter revenue increased 11.3% year-over-year to $2.5 billion, which beat the consensus estimate of $2.47 billion, according to Benzinga Pro. 

The fast-casual restaurant chain company reported quarterly earnings of $11.36 per share, which beat analyst estimates of $10.55 per share. 

Comparable restaurant sales increased 5% year-over-year, mainly driven by higher transactions. 

Digital sales represented 36.6% of food and beverage revenue. Operating margin was 16% in the third quarter, up from 15.1% year-over-year. 

Chipotle said it opened 62 new restaurants in the quarter, and 54 of those locations included a Chipotlane. 

"Chipotle's value proposition including customized, delicious culinary served quickly with great hospitality, is stronger than ever which is translating to great results including sustained positive transaction growth," said Brian Niccol, chairman and CEO of Chipotle.

Outlook: Chipotle sees full-year 2023 comparable restaurant sales growth in the mid to high-single-digit range. 

The company expects to open 255 to 285 new locations in 2023 and 285 to 315 new locations in 2024. 

"We remain focused on developing exceptional people, preparing delicious food and fast throughput which will further strengthen our brand and continue to position us for long term growth," Niccol added.

Management will hold a conference call to discuss these results at 4:30 p.m. ET.

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CMG Price Action: Chipotle shares were up 5.24% after hours at $1,900.68 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Chipotle.