Investor Alert

New York Markets Open in:

Earnings Watch Archives | Email alerts

Oct. 23, 2019, 8:24 a.m. EDT

Chipotle stock climbs after earnings beat

Chipotle says food, beverage and packaging costs declined slightly because menu price increases offset by higher costs of ‘several’ ingredients

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Chipotle Mexican Grill Inc. (CMG)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Max A. Cherney

Getty Images
For the fourth quarter, analysts model Chipotle earnings of $2.90 a share and sales of $1.38 billion.

Chipotle Mexican Grill Inc. shares rose roughly 2% in the extended session Tuesday after the company beat earnings and revenue expectations.

But the stock was down 2% in premarket trade Wednesday as analysts weighed in on the numbers. Chipotle /zigman2/quotes/200781108/composite CMG -0.87%  reported third-quarter net income of $98.6 million, or $3.47 a share, compared with $38.2 million, or $1.36 a share, in the year-ago period. Adjusted for items such as restaurant asset impairment expense and restructuring, among other things, earnings were $3.82 a share. Revenue rose to $1.4 billion from $1.23 billion in the year-ago period.

Analysts surveyed by FactSet had estimated adjusted earnings of $3.21 a share on revenue of $1.38 billion. Wall Street expected the company to benefit from the falling price of avocados and its carne asada, which the company introduced in September.

In the earnings release, the company said that food, beverage and packing costs declined 0.2% to 33.2% of revenue due to national menu price increases partially offset by the higher costs of “several ingredients.” It was not immediately clear whether the company was referring to avocados.

For the fourth quarter, analysts model earnings of $2.90 a share and sales of $1.38 billion.

Chipotle stock has gained 93% this year, with the S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.36%  rising 20%.

See also: Chipotle’s CEO explains how his company achieved a surprising comeback that has sent its stock rocketing

$ 1,049.71
-9.18 -0.87%
Volume: 516,559
June 3, 2020 4:00p
P/E Ratio
Dividend Yield
Market Cap
$29.28 billion
Rev. per Employee
+42.05 +1.36%
Volume: 3.16B
June 3, 2020 5:18p

Max A. Cherney is a MarketWatch reporter based in San Francisco. Follow him on Twitter @chernandburn.

Get news alerts on Chipotle Mexican Grill Inc. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.