Chipotle shares rise 7% after CEO says same-store sales growth will continue

Summary

• Chipotle reported mixed quarterly results with a restaurant-level operating margin shrink from 24.5% to 23.3%.
• Traffic & same-store sales grew for the third straight quarter, driven by low-income consumers spending more than high-income cohorts.
• Shares rose 7% in extended trading following the earnings announcement.
• CEO Scott Boatwright expressed high confidence in performance for the remainder of the fourth quarter.
• CFO Adam Rymer expects fourth-quarter same-store sales growth of about 2%.
• Earnings per share were 27 cents adjusted, missing the 29 cents expected by analysts.
• Revenue matched expectations at $3.29 billion, up 9.6% from the prior year.
• Net income fell to $339.9 million from $382.1 million a year earlier.
• The company opened 84 company-owned restaurants & five international locations during the quarter.
• Sales growth was lifted by a 1.3% increase in average check.
• The chain previously faced sales pullbacks due to cyclospora concerns & a temporary jalapeno recall linked to salmonella.
• Full-year same-store sales are forecast to increase by a low-single-digit percentage.
• Projections for 2027 include opening 340 to 360 new company-owned locations in the U.S. & Canada & 15 to 25 international restaurants.