Chipotle Mexican Grill easily tops earnings estimates, as price hikes help offset higher food prices

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Beef and queso costs rose this quarter, largely offsetting last year’s menu price hikes.

The burrito chain recently raised prices for the first time in over a year, citing inflation.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:The burrito chain reported third-quarter net income of $313.2 million, or $11.32 per share, up from $257.1 million, or $9.20 per share, a year earlier. Excluding corporate restructuring costs, Chipotle earned $11.36 per share.

Beef and queso costs rose this quarter, largely offsetting last year's menu price hikes. Earlier this month, Chipotle raised menu prices for the first time in more than a year, citing inflation.The company had paused its aggressive price hikes earlier this year as consumers pulled back their restaurant spending. Still, CEO Brian Niccol has maintained that Chipotle has pricing power and more room to run.

Net sales climbed 11.3% to $2.47 billion. Same-store sales rose 5%, beating StreetAccount estimates of 4.6%. The company credited higher transactions and menu prices for the quarter's same-store sales growth. Chipotle opened 62 new restaurants during the quarter. All but eight of those locations featured a"Chipotlane," a drive-thru lane reserved for picking up digital orders.Beef prices are at record highs — how much pricier will your steak get?David Dombrowski

 

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