Summary
Chipotle Mexican Grill (CMG) reported strong performance in its first quarter of 2022, with total revenue increasing 16.0% to $2.0 billion year-over-year. This growth was primarily driven by a 9.0% increase in comparable restaurant sales, fueled by menu price adjustments and a rebound in in-restaurant dining, which grew 33.1% as COVID-19 restrictions eased. Digital sales, while a smaller percentage of overall revenue compared to the prior year, remained resilient, representing 41.9% of food and beverage revenue. Despite increased costs related to labor and food inflation, which pushed restaurant operating costs to 79.3% of revenue, the company saw a significant improvement in diluted earnings per share, which rose 25.6% to $5.59. This was partly due to a lower effective income tax rate and a decrease in general and administrative expenses, notably from lower stock-based compensation costs compared to the prior year. The company also continued its strategic expansion, opening 51 new restaurants, with a strong emphasis on the Chipotlane format. Financially, Chipotle maintained a robust liquidity position with $1.2 billion in cash and marketable investments as of March 31, 2022. The company actively engaged in share repurchases, utilizing $349.5 million in financing activities primarily for stock buybacks and tax withholdings related to stock compensation. Management expressed confidence in generating positive cash flow and achieving long-term growth, reiterating its goal to more than double the number of restaurants in North America.
Financial Highlights
46 data points| Revenue | $2.02B |
| Operating Expenses | $1.83B |
| Operating Income | $190.22M |
| Net Income | $158.29M |
| EPS (Basic) | $0.11 |
| EPS (Diluted) | $0.11 |
| Shares Outstanding (Basic) | 1.40B |
| Shares Outstanding (Diluted) | 1.42B |
Key Highlights
- 1Total revenue increased 16.0% to $2.0 billion in Q1 2022 compared to Q1 2021.
- 2Comparable restaurant sales grew 9.0% year-over-year, driven by menu price increases and higher in-restaurant traffic.
- 3In-restaurant sales surged 33.1% due to the easing of COVID-19 restrictions.
- 4Diluted earnings per share increased 25.6% to $5.59, benefiting from higher sales, pricing, and a lower effective tax rate.
- 5Restaurant operating costs as a percentage of revenue increased to 79.3% due to higher labor and food costs.
- 651 new restaurants were opened, with 42 featuring the popular Chipotlane format.
- 7The company returned $349.5 million to shareholders through share repurchases and tax withholding payments.