Chipotle Mexican Grill, Inc. (CMG) Same-Store Sales Top Outlook

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Chipotle Mexican Grill, Inc. (NYSE:CMG) posted strong quarterly figures after increasing menu prices.

Chipotle Mexican Grill, Inc. (CMG)During its fourth quarter, the burrito chain reported earnings of $1.55 per share thanks to a 21-cent benefit related to the changes in the U.S. tax law, topping the year-ago mark of 55 cents per share. On an adjusted basis, Chipotle earned $1.34 per share, meeting the Wall Street consensus estimate, according to Thomson Reuters.

The company’s revenue topped the year-ago mark by 7.3%, coming in at $1.11 billion. Analysts polled by Thomson Reuters were calling for sales of $1.11 billion to close out its fiscal 2017.

Chipotle’s same-store sales impressed, rising 0.9% compared to the year-ago quarter. The Wall Street consensus estimate called for a same-store sales growth of 0.8%, according to StreetAccount.

The company’s increased earnings were benefited by higher menu prices instituted by the company last April. These price hikes took place in waves, with the last bump coming in January, increasing prices of items that had not seen increases by 5% to 7%.

“During 2017, we have made considerable changes around leadership, operations, and long-term planning and it is clear that, while there is still work to be done, we are starting to see some success,” Chipotle CEO Steve Ells said in a statement.

“Our focus this year will be to continue perfecting the dining experience, enhancing the guest experience through innovations in digital and catering, and reinvesting in our restaurants,” Ells said.

CMG stock popped 1.2% after hours.


Article printed from InvestorPlace Media, https://investorplace.com/2018/02/chipotle-mexican-grill-inc-cmg-4/.

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