Chipotle Mexican Grill Inc. (NYSE: CMG), a Mexican restaurant company, announced double-digit sales growth in the first quarter. The return of tourists to restaurants after a long “pandemic” absence was the growth driver.
Chipotle Mexican Grill’s total revenue increased 16 percent year over year to $2 billion in the first quarter. In-store sales climbed by 33% year over year, with like-for-like sales increasing by 9%. This is owing to the fact that guests who had been ordering food home for several months are suddenly returning to eateries.
Chipotle Mexican Grill Inc. (CMG), on the other hand, continues to have great internet sales despite this condition. They presently account for 42% of the overall sales of the chain. The non-GAAP net income of Chipotle Mexican Grill climbed 5% year over year to $161.4 million, or $5.7 per share.
The board of directors of CMG has authorised a fresh $300 million share repurchase programme for the next quarter. It’s worth noting that the corporation still had $280 million left over from the previous repurchase programme at the end of March.
If current sales trends continue, Chipotle Mexican Grill (CMG) expects to raise like-for-like sales by 10% to 12% for the whole year. In the following months, the firm aims to establish around 250 more eateries. 51 new locations were opened in the first quarter.
Chipotle Mexican Grill Inc. (CMG) was able to make it through the challenging era of the epidemic because to its innovative digital ordering technology. Almost all limitations have now been relaxed, and customers are returning to restaurants. As a result, the chain should expect even more active sales, as the check at the point of sale is often greater than with computerised ordering. An increase in the repurchase programme might signal that the corporation is optimistic about its financial results.
The shares of Chipotle Mexican Grill Inc. (CMG) has dropped -1.33 percent in the last week and -5.63 percent in the last month. Its pricing has dropped -14.15 percent this year and 1.13 percent in the last year.