Operations

Chipotle misses the mark in Q4 2022

Provided

February 8, 2023

Despite falling short of revenue, earnings per share and same-store sales expectations for Q4, ending Dec. 31, 2022, Chipotle CEO Brian Niccol told investors Tuesday in an earnings call that he is happy with the chain's "strong results in 2022, expanding AUVs and restaurant-level margin despite facing one of the highest inflationary periods on record and an uncertain macro environment."

The chain reported the following:

• Revenue: $2.2 billion versus $2.23 billion.
• Adjusted earnings per share: $8.29 versus $8.91 per share.
• Same-store sales: Up 5.6% versus 7.04%.

Niccol said sales for the year were up 14%, to reach $8.6 billion driven, by an 8% comp and that digital sales represented 39% of sales. Chipotle opened 236 restaurants, including 202 Chipotlanes, its drive-thru prototype, and celebrated the opening of the 500th Chipotlane.

"In fact, since we began opening Chipotles in 2018, our new restaurant productivity has improved by about 1,000 basis points," Niccol said. "We plan to open 255 to 285 new restaurants in 2023 with over 80% including the Chipotlane."

Heading into 2023, Chipotle is focusing on growth in Canada and will continue to open restaurants at a measured pace in Europe.

"In Canada, we have built out a strong local field leadership team that works closely with our U.S. team to ensure best practices and a consistent culture, while adapting to local needs," Niccol said. "We are now ready for accelerated growth and plan to add around 10 new restaurants in 2023, which will be the fastest development growth rate since we entered the Canadian market."

The company is also encouraged by the performance in Europe despite a challenging macroeconomic backdrop.

"In 2023, we plan to add a few additional locations in the UK, and we are also rolling out our digital capabilities to further expand access," Niccol said. "We remain optimistic about the growth opportunity, and we will continue to update on Europe's progress of the stage-gate process along the way."