Chipotle’s revenue jumps 14% to £1.22 billion in fiscal Q3

Chipotle’s revenue jumps 14% to £1.22 billion in fiscal Q3
Written by:
Wajeeh Khan
22nd October, 10:33
  • Chipotle’s revenue jumps 14% to £1.22 billion in the fiscal third quarter.
  • The U.S. chain of fast casual restaurants reports £61.28 million of net income.
  • Chipotle Mexican Grill's digital sales jump 202.5% to £593.20 million in Q3.

Chipotle Mexican Grill Inc. (NYSE: CMG) said on Wednesday that its sales in the fiscal third quarter returned to the growth zone despite the ongoing Coronavirus pandemic.

Chipotle slid close to 3.5% in extended trading on Wednesday. Including the price action, shares of the company are now trading at £1,005 per share that represents a roughly 200% recovery in the stock market since March when the stock had touched a year to date low of £355 per share due to the COVID-19 crisis.

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Chipotle had started the year at a per-share price of £656. Confused about choosing a reliable stockbroker to trade online? Here’s a list of the top few to make selection easier for you.

Chipotle’s Q3 financial results versus analysts’ estimates

Chipotle said that its net income in the third quarter came in at £61.28 million that translates to £2.15 per share versus the year-ago figure of £2.65 per share. The company attributed the decline to additional costs related to restaurant closures, restructuring, and legal proceedings.

In separate news from the U.S., Abbott Laboratories also published its earnings report on Wednesday that highlighted a 9.6% growth in sales in the fiscal third quarter.

On an adjusted basis, Chipotle earned £2.87 per share in Q3 as compared to £2.92 per share in the same quarter last year. In terms of revenue, the fast casual restaurants chain posted an annualised growth of 14% in the third quarter to £1.22 billion. Its same-store sales in the recent quarter jumped by 8.3%.

According to FactSet, experts had forecast the American company to record £1.21 billion of revenue, £2.65 of earnings per share, and a 7.3% growth in comparable-store sales in the fiscal third quarter.

Chipotle’s digital sales jump 202.5% in the fiscal third quarter

At £593.20 million, the Newport Beach-based company said its digital sales in Q3 jumped 202.5% and made up 48.8% of its total quarterly sales. Chipotle benefited greatly from its online ordering and delivery service in the recent quarter. Its digital sales had tripled in the prior quarter (Q2) as well.

The American chain, however, refrained from giving future guidance on Wednesday citing the Coronavirus uncertainty. COVID-19 has so far infected more than 8.5 million people in the United States and caused over 225 thousand deaths.

At the time of writing, Chipotle Mexican Grill Inc. has a market cap of £29 billion and a price to earnings ratio of 151.68.

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