Chipotle Reports Q4 Earnings and Beats Estimates

Mexican burrito restaurant chain Chipotle reported its fourth quarter financial report this week and beat estimates.
The company reported earnings of $2.86 a share compared to the $2.75 that was expected.

Chipotle had extended its limited-time offer of carne asada into the first quarter of 2020 which may have helped pull in customers for the quarter.

Shares of the company rose 1% in extended trading on Tuesday and hit an all-time high of $890.17.

Chipotle reported revenue of $1.4 billion which was in line with expectations. Same-store sales of 13.4% was also ahead of the 9.5% expected.

The company revealed fiscal fourth-quarter net income of $72.4 million, or $2.55 per share, up from $32 million, or $1.15 per share, a year earlier.

Net sales rose 17.6% to $1.4 billion, meeting expectations. Digital sales, including those from delivery, grew by 78.3% in the quarter and was nearly a fifth of the company’s sales during the fourth quarter. They also exceeded a billion dollars for fiscal 2019.

This year Chipotle expects to add between 150 to 165 new restaurants, about half of which will include a drive-thru lane for only digital orders.

The company also disclosed that it expects it may be asked to shell out $25 million to settle the U.S. Attorney’s investigation into the company.

The invetigation began four years ago when foodborne illness outbreaks occurred at the company’s restaurants.

“While there can be no assurance that a settlement will be reached, we have been cooperating with the investigation and are in discussions to resolve this matter,” Chipotle said.

Disclaimer: We have no position in Chipotle Mexican Grill, Inc. (NYSE: CMG) and have not been compensated for this article.