Chipotle forecasts quarterly sales above Wall Street expectations
2022.04.27 00:11
FILE PHOTO: The logo of Chipotle is seen on one of their restaurants in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo
(Reuters) -Chipotle Mexican Grill Inc forecast second-quarter same-store sales above analysts’ estimates on Tuesday, betting demand for its burritos and rice bowls will remain buoyant despite a few rounds of price increases.
The burrito chain forecast comparable restaurant sales growth of 10% to 12% for the current quarter, compared with estimates of an 8.8% growth, according to IBES data from Refinitiv.
The company’s shares rose 3% in extended trading.
Chipotle (NYSE:CMG), like rivals McDonald’s Corp (NYSE:MCD) and Starbucks Corp (NASDAQ:SBUX), has raised prices of its in-store and delivery menus in a bid to counter an increase in prices of everything from beef to cooking oil as well as worker wages.
Food, beverage and packaging costs in the first quarter were 31% of total revenue, an increase of 100 basis points from a year earlier.
Comparable sales rose 9% in the first quarter ended March 31, while analysts polled by Refinitiv expected a 7.9% growth.
