Operations

Chipotle boasts record-breaking sales

Provided

October 21, 2021

Chipotle broke its record for quarterly sales, reporting Thursday that comparable restaurant sales were up 15% and that revenues jumped 22% during Q3. Earnings per share were $7.02, smashing analysts' predictions of $6.32.

"Chipotle's third-quarter results demonstrate strong momentum in our business fueled by a multi-pronged strategy and a passionate team that's delighted to welcome more guests back into our restaurants," Brian Niccol, chairman and CEO, said in a company press release. "Our team has proven their ability to be resilient and successfully execute against macro complexities. As a result, I believe we are better positioned to drive sustainable long-term growth than ever before, which makes me excited about what we can accomplish in the years ahead."

Third-quarter highlights, year over year included:

Total revenue increased 21.9% to $2 billion.
Comparable restaurant sales increased 15.1%.
Digital sales grew 8.6% and accounted for 42.8% of sales.
Operating margin was 12.3%, an increase from 6.7%.
Restaurant-level operating margin was 23.5% 1, an increase of 400 basis points.
Diluted earnings per share was $7.18, a 154.6% increase from $2.82. Excluding a $0.16 after-tax net impact resulting from a tax benefit, which was partially offset by certain stock compensation expenses, corporate restructuring costs, restaurant asset impairment and closure costs, and certain other expenses, adjusted diluted earnings per share was $7.02, an 86.7% increase from $3.76 1.
Opened 41 restaurants including 2 relocations.

For 2021, management is anticipating the following:

Fourth-quarter comparable restaurant sales growth in the low to mid-double-digits range.
At or slightly above 200 new restaurant openings.
An estimated underlying effective fourth-quarter tax rate between 25% and 27% before discrete items.

Although beef and freight costs were also up, the chain increased menu prices by 4% in June, which helped offset not only those costs but also the cost of raising workers' wages to an average of $15 an hour.