Fast-casual food giant Chipotle Mexican Grill rallied to all-time highs Wednesday after reporting Q4 and full-year results late Tuesday.
Chipotle reported a 25% increase in adjusted earnings to $10.36 per share, accelerating after two quarters of slowing gains. Revenue growth increased 15.4% to $2.5 billion following two quarters of deceleration. Digital sales represented 36.1% of total food and beverage sales for the quarter, dipping from 37.4% last year.
FactSet expected Chipotle to report 17.2% increase in adjusted earnings to $9.71 per share on 14.7% revenue growth to $2.49 billion.
Comparable sales rose 8.4%, beating expectations of a 7.1% increase. Same-store sales climbed 5% last quarter and increased 5.6% last year.
Chipotle opened 121 new restaurants during the quarter, with 110 locations including a Chipotlane drive-through.
Full-year earnings jumped 37% to $44.86 per share adjusted, beating views of $44.19 per share. Fiscal 2023 sales grew 14.3% to $9.9 billion, edging out FactSet estimates of $9.84 billion. Comparable sales rose 7.6%, in-line with FactSet forecasts. Digital sales represented 37.4% of 2023 food and beverage revenue, down from 39.4% last year.
The fast casual chain guided 2024 comparable sales climb in the mid-single digit range and plans to open 285 to 315 new restaurants.
FactSet expects 2024 earnings of $53.41 per share adjusted on $11.17 billion in sales, with 5.3% comparable sales growth.
Chipotle Stock
Chipotle rallied 8.4% Wednesday to a new record high.
CMG stock is extended well above a 2175.01 buy point following a cup base breakout in mid-November, as well as a couple of rebounds from support at its 10-week moving average.
Shares leapt nearly 53% from mid-October lows and jumped nearly 18% so far this year.
Stifel on Friday hoisted its price target on Chipotle to $2,560 from $2,450 and kept a buy rating on the shares, noting it is confident in the company's top-line momentum. The firm anticipates solid fourth-quarter performance with about 7% comparable sales growth, according to a research note. Meanwhile, mobile data suggests visitation growth has remained consistent each month during the quarter.
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