Chipotle Mexican Grill (NYSE:CMG) gained after the company’s fourth-quarter results exceeded market expectations.
Comparable sales surged by 8.4%, surpassing the estimated 7.1% growth, showcasing strong demand for their offerings. Adjusted earnings per share (EPS) stood at $10.36, easily ahead of the estimated $9.68.
CMG stock rose 2.5% on the news.
The company's revenue reached $2.52 billion, reflecting a 15% year-on-year increase, beating the estimate of $2.49 billion. Chipotle's operational efficiency improved as well, with an operating margin of 14.4%, up from 13.6% last year and above the consensus of 13.8%.
At the restaurant level, the operating margin reached 25.4%, surpassing last year's 24% and beating the estimate of 24.6%.
Chipotle continued its expansion, opening 121 new restaurants, marking a 21% YoY growth, slightly above the estimated 118. Moreover, the average sales per restaurant increased by 6.9% to $3.02 million.
Chipotle's outlook for the full year includes expectations of comparable restaurant sales growth in the mid-single digit range. The company plans to open 285 to 315 new restaurants, provided that there are no significant delays due to developer, permit, inspection, or utility issues.