Chipotle Mexican Grill Inc (CMG, Financial) released its Q3 2023 earnings report on October 26, 2023. The company reported an 11.3% increase in total revenue, amounting to $2.5 billion, compared to the third quarter of 2022. This increase was primarily driven by new restaurant openings and a 5% increase in comparable restaurant sales.
Financial Highlights
Net income for the quarter was $313.2 million, or $11.32 per diluted share, compared to $257.1 million, or $9.20 per diluted share, in the third quarter of 2022. The company opened 62 new restaurants during the quarter, with 54 locations including a Chipotlane, contributing to the increase in total revenue.
Food, beverage, and packaging costs in the third quarter were 29.7% of total revenue, a decrease of about 10 basis points compared to the third quarter of 2022. The benefit from last year’s menu price increases was mostly offset by inflation across several food costs, primarily beef and queso.
Operating Margin and Expenses
Restaurant level operating margin in the third quarter was 26.3% compared to 25.3% in the third quarter of 2022. The improvement was primarily due to the benefit of sales leverage, partially offset by higher inflation across several food costs and, to a lesser extent, wage inflation.
General and administrative expenses for the third quarter were $159.5 million on a GAAP basis, or $158.2 million on a non-GAAP basis, excluding $1.3 million of corporate restructuring costs related to the May 2023 optimization of the organizational structure.
Share Repurchase and Outlook
During the third quarter, the Board of Directors approved the investment of up to an additional $300 million, exclusive of commissions, to repurchase shares of the common stock, subject to market conditions. Including this repurchase authorization, $368.4 million was available as of September 30, 2023. The company repurchased $226.3 million of stock at an average price per share of $1,913.98 during the third quarter.
More information will be available in the company's Quarterly Report on Form 10-Q, which will be filed with the SEC by the end of October.
Explore the complete 8-K earnings release (here) from Chipotle Mexican Grill Inc for further details.
