• Funding
  • Investing
  • Lending
  • Insurance
  • Banking
  • Wealth
  • Fintech
  • Venture
  • Crypto
Subscribe
No Result
View All Result
wealth
  • Earning
  • Savings
  • Investments
  • Budgetting
  • Credit Management
  • Tax Planning
  • Retirement
Home Wealth Budgetting

Chipotle shares fall despite earnings beat, as robust delivery growth weighs on profits

CNBC NewsbyCNBC News
October 24, 2020

A customer carries a Chipotle Mexican Grill Inc. bag outside a restaurant in San Francisco, California, U.S., on Monday, July 20, 2020.

David Paul Morris | Bloomberg | Getty Images

Chipotle Mexican Grill on Wednesday reported quarterly same-store sales growth of more than 8%, but a shift to delivery is boosting costs and resulting in fewer drink purchases, which dragged down its net income.

Shares of the company fell 4% in after-hours trading.

Here’s what the company reported for the quarter ended Sept. 30 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $3.76, adjusted, vs. $3.47 expected
  • Revenue: $1.6 billion vs. $1.59 billion expected

Chipotle reported third-quarter net income of $80.2 million, or $2.82 per share, down from $98.6 million, or $3.47 per share, a year earlier. A higher volume of delivery and steak orders and more expensive beef increased costs, which were partially offset by menu price increases, less salsa usage and lower avocado prices.

Excluding $28.7 million in legal expenses and other items, the burrito chain earned $3.76 per share, topping the $3.47 per share expected by analysts surveyed by Refinitiv.

Net sales rose 14.1% to $1.6 billion, narrowly beating expectations of $1.59 billion. Same-store sales climbed 8.3% in the quarter, hitting a peak in August. Strong demand continued into September, but the company was lapping higher same-store sales growth due to the launch of its carne asada option last year in that month.

For the second consecutive quarter, digital sales more than tripled. CEO Brian Niccol said that digital sales could exceed $2.5 billion this year, more than double last year’s total. Online orders accounted for nearly half of all sales, and about half of Chipotle’s digital customers chose to have their orders delivered.

Delivery service revenue, which includes delivery and service fees paid by customers to Chipotle through its app and website, made up 1.3% of its net sales. The company said that revenue charged to customers doesn’t fully cover the commission fees it pays to third-party delivery providers, such as DoorDash and Grubhub.

CFO Jack Hartung said that the company is testing menu price increases on delivery orders but hasn’t seen any noticeable changes to demand yet. The tests raise prices from 7% to 17%, according to Niccol.

The company opened 44 restaurants and permanently closed 3 during the quarter. Twenty-six of the new locations had Chipotle’s drive-thru lanes, which are only for picking up digital orders.

Chipotle once again declined to provide an outlook for 2020, citing the uncertainty of the pandemic.

Read the full earnings report here.

Watch CNBC’s exclusive interview with Chipotle CEO Brian Niccol tomorrow on “Halftime Report” at 12:30 p.m. ET.

Source Link

Related Topics

Bitcoin

Donald Trump Banned From Twitter in Final Days of Presidency

Investing

Fintech start-up SoFi to go public via SPAC backed by Chamath Palihapitiya

Prev Next

You May Like

Bitcoin

Donald Trump Banned From Twitter in Final Days of Presidency

Investing

Fintech start-up SoFi to go public via SPAC backed by Chamath Palihapitiya

Bitcoin

Total Cryptocurrency Market Value Hits Record $1 Trillion

Blockchain News

XLM Price Surges as Ukraine Selects Stellar Lumens for CBDC Development

Financial News

Personal Finance

The CARES Act added a new $300 charitable contribution deduction for 2020. Here’s what you should know

CNBC News
by CNBC News
Stock Market

They lived paycheck to paycheck before the pandemic. Then their worst nightmare came true

CNBC News
by CNBC News
Personal Finance

Evictions have led to hundreds of thousands of additional Covid-19 cases, research finds

CNBC News
by CNBC News
Stock Market

Stocks making the biggest moves in the premarket: Gap, Nordstrom, Deere, HP Inc. & more

CNBC News
by CNBC News
Banking

Crypto Asset Manager NYDIG Hires Tech-Savvy Banker to Pitch Its Wares to Institutions

CoinDesk
by CoinDesk
Personal Finance

Pierre Cardin, ground-breaking fashion designer and master marketer, dies at 98

CNBC News
by CNBC News
Personal Finance

Elizabeth Holmes’ trial to play out before face-masked jurors in socially distanced courtroom

CNBC News
by CNBC News
Investing

Merrill to pay $26 million to New Hampshire, former NH Governor to settle churning allegations

CNBC News
by CNBC News
Load More

© 2020, FinanceLane

Home | Contact | Terms and Conditions | Disclaimer | Privacy Policy

  • Home
  • News Feed
    • Equity Funding
    • Debt Funding
    • Crowdfunding
    • Real Estate Funding
  • Investing
    • Stocks
    • Bonds
    • Mutual Funds
    • Private Equity
    • Merging & Acquisition
    • Real Estate
  • Lending
    • Personal Loan
    • Business Loan
    • Credit Card
    • Microfinance
    • Peer-to-Peer Lending
  • Insurance
    • Life Insurance
    • Auto Insurance
    • Education Insurance
    • Health Insurance
  • Banking
    • Business Banking
    • Payments Bank
    • Investment Banking
    • Individual Banking
  • Wealth
    • Earning
    • Savings
    • Investments
    • Budgetting
    • Credit Management
    • Tax Planning
    • Retirement
  • Fintech
    • Alternative Financing
    • Payments
    • Asset Management
    • Digital Banks
    • Softwares
  • Venture
    • Startup Ecosystem
    • Merging & Acquisition
    • Equity Investing
    • Franchising
    • Business Offers
  • Fintech
    • Alternative Financing
    • Asset Management
    • Digital Banks
    • Softwares
    • Payments
  • Crypto
    • Crypto Investing
    • Crypto Trading
    • Crypto Coins
    • Bitcoin
    • Blockchain
    • DAPP
  • Subscribe
  • Contact
  • Login

© 2020 FinanceLane - Terms and Conditions | Disclaimer | Privacy Policy

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

← Filecoin Founder Accuses Justin Sun of Spreading Lies About FIL Tokens as Fresh Dumping Allegations Emerge ← PayPal gets into crypto with new features for trading and shopping
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.