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    Chipotle Mexican Grill Inc. Reports Disappointing 4th Quarter Earnings


    Chipotle Mexican Grill Inc. (NYSE:CMG) released its fourth-quarter earnings report on Wednesday, disappointing both analysts and investors alike.[0] The burrito chain reported total revenue of $2.2bn, an increase of 11.2% compared to the same period in 2021.[1] Comparable restaurant sales increased 5.6% year-over-year, while earnings per share were slightly lower than expected at $8.29 per share.[2]

    Excluding certain legal expenses, corporate restructuring costs and other items, Chipotle earned $8.29 per share, compared to $5.58 a share in the prior-year quarter.[3] Per a survey conducted by FactSet, analysts anticipated adjusted earnings per share of $8.91, in addition to revenue of $2.23 billion.[4] It was anticipated that same-store sales would increase by 6.9%.[4]

    Chipotle's same-store sales experienced an 8% increase over the entire year.[5] Revenues rose to $8.6 billion, a 14.4% increase, while net income came in at $899 million, equating to $32.04 per share, compared to $652.9 million and $22.90 per share from the prior year.[6] In-restaurant sales increased 26.4% for the year ended December 31, 2022, as compared to the year ended December 31, 2021, while digital sales represented 39.4% of total food and beverage revenue.[2]

    Restaurant level operating margin was up 24% from this time last year—20.2%.[7] Sales leverage was the main factor that led to the improvement, while lower delivery fees resulting from fewer delivery transactions had a smaller effect. This progress was partly negated by higher food costs and wage inflation.[8] Food, beverage and packaging costs in the fourth quarter were 29% of total revenue, a decrease of 230 basis points compared to the fourth quarter of 2021.[2]

    Chipotle Mexican Grill’s shares fell 5% in after-hours trading after the burrito restaurant chain reported fourth-quarter adjusted earnings, revenue, and same-store sales that fell short of Wall Street’s expectations.[9]

    Last year, the company opened 236 additional restaurants, bringing the total number of restaurants they operate up to 3,187.[6] Many of the new restaurants featured Chipotlanes, a drive-thru lane designated solely for orders placed on the mobile app.[10]

    Investors are willing to give Chipotle credit for the latest growth, but the fast-casual restaurant chain's valuation is still quite high.[11]

    0. “Chipotle Missed Its Earnings, Here's Why It's Still A Buy (NYSE:CMG)” Seeking Alpha, 8 Feb. 2023,

    1. “Chipotle reports 11.2% revenue increase in Q4 2022” Verdict Foodservice, 8 Feb. 2023,

    2. “Chipotle stock loses its spice as 4Q earnings disappoint” Proactive Investors USA, 8 Feb. 2023,

    3. “Chipotle Mexican Grill Misses Expectations for Earnings, Revenue and Same-Store Sales” NBC 6 South Florida, 7 Feb. 2023,

    4. “Chipotle stock falls after ‘tightening' consumer spending leads to second earnings miss in 5 years” MarketWatch, 7 Feb. 2023,

    5. “Chipotle to test a robotic makeline and new grills” Restaurant Business Online, 8 Feb. 2023,

    6. “Chipotle sees 15% drop in delivery orders amid prices hikes” Business Insider, 7 Feb. 2023,

    7. “Chipotle Slumps After Disappointing on Sales, Key Profit Margin” Bloomberg, 7 Feb. 2023,

    8. “Chipotle's Q4 2022 earnings preview: Here's what to expect” Yahoo News, 7 Feb. 2023,

    9. “Chipotle Stock Falls After Earnings Disappointed” Barron's, 8 Feb. 2023,

    10. “Chipotle Stock: Time to Sell Some Shares?” The Motley Fool, 8 Feb. 2023,

    11. “Chipotle's Valuation Does Not”, 8 Feb. 2023,

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