Chipotle Mexican Grill records an all-time high following the Q4 earnings report

Chipotle Mexican Grill announced its quarterly performance results on Tuesday. The company matched the experts’ forecast for revenue in the fourth quarter but beat on the earnings front by a significant margin. The American chain of fast-casual restaurants cited its limited-time carne asada to have contributed the most in bringing more customers in the recent quarter.

Gaining 1% in the stock market ahead of the earnings report, Chipotle posted a record high of $890.17 on Tuesday. In after-hours trading, the stock surged to as high as $903 per share in the stock market. In 2020 so far, Chipotle has gained a little over 4%.

Chipotle’s Figures Versus Analysts’ Estimates

Based on Refinitiv’s data, experts were anticipating the American chain to print $1.4 billion in revenue in the fourth quarter. Analysts had also expected the company to make $2.75 of earnings per share (EPS) in the recent quarter. Tuesday’s report matched the expectations on the revenue’s front while earnings were posted at a higher $2.86 per share. In terms of same-store sales, the company recorded a massive growth of 13.4% in the fourth quarter versus the experts’ forecast of 9.5%.

Net income in Q4 was reported at $72.4 million. In the same quarter last year, the figure was capped at $32 million. The aforementioned EPS excluded costs associated with restaurant closure, restructuring expenses, etc., including which, the EPS was pronounced at $2.55 per share.

With a 17.6% increase, net sales were noted at $1.4 billion that was in line with the analysts’ forecast. Digital sales, the company added, saw a massive 78.3% increase in the fourth quarter. Digital sales in the recent quarter accounted for 1/5^th of the total sales. In fiscal 2019, digital sales were valued at $1 billion for Chipotle.

Same-Store Sales Climbed 5.4% In The Fourth Quarter

The 13.4% increase in same-store sales was also accompanied by a 5.4% growth in terms of customers’ spending in the fourth quarter. Higher sales and spending were attributed to the chain’s limited-time carne asada (pricier protein option). According to Chipotle, the limited-time offer is likely to no longer be available after the first quarter. CEO Brian Niccol, however, expressed interest in making it a permanent option on the menu for which the company needs to find suppliers that can match its quality standards.

Currently exchanging hands at over $900 per share, the stock marks around 100% growth in the past 13 months.