Chipotle earnings beat estimates as customers paid more, helping offset surging costs
Chipotle Mexican Grill is expected to report its first-quarter earnings after the bell on Tuesday.
Here’s what Wall Street analysts surveyed by Refinitiv are expecting:
Earnings per share: $5.64 expectedRevenue: $2.01 billion expected
Like the broader restaurant industry, Chipotle has been facing higher costs for labor and its ingredients. Executives said last quarter that the chain has pricing power, but investors will be watching to see if consumers have become more sensitive to paying more for their tacos and burritos.
Same-store sales growth was already expected to slow somewhat due to the omicron variant and winter storms. Wall Street is forecasting same-store sales increased by 7.9% in the quarter, according to StreetAccount estimates. Last quarter, the chain reported same-store sales growth of 15.2%.
In the face of these challenges, the stock has been selling off ahead of its earnings report. Over the last week, shares have fallen 11% giving the company a market value of $40.4 billion.
This is a developing story. Check back for updates.