Chipotle Q3 Earnings Highlights: Revenue Decline, EPS Beat, Business Guidance Update, 'Strong Results Driven by Transaction Growth' – Chipotle Mexican Grill (NYSE:CMG)

Restaurant inventory Chipotle Mexican Grill CMG announced third-quarter financial results after the market closed on Tuesday.

Here are the key highlights.

What happened: Chipotle reported third-quarter revenue of $2.79 billion, up 13% from a year earlier. The total missed the Street consensus estimate of $2.82 billion, according to data from Benzinga Pro.

The company reported third-quarter adjusted earnings of 27 cents per share, beating the Street consensus estimate of 25 cents per share.

Comparable restaurant sales rose 6% in the third quarter. The comparable sales were due to a mix of higher transactions and a 2.7% increase in the average check, the company said.

Digital sales accounted for 34% of total food and beverage sales in the third quarter.

Chipotle's operating margin was 16.9% for the quarter, while its restaurant operating margin was 25.5%.

The company opened 86 new company-owned restaurants and one internationally licensed restaurant in the district. Of the new locations, 73 had a Chipotlane.

“Our focus on exceptional people, food and throughput, as well as the long-awaited return of Smoked Brisket, resulted in another quarter of strong results, led by transaction growth,” said Chipotle’s interim CEO Scott Boatwright said.

Also Read: McDonald's Once Owned 90% of Chipotle: Why It Sold Its Stake Too Soon and Missed a $73 Billion Opportunity

What's next: The company's forecast calls for mid- to high-single-digit restaurant sales growth for the full fiscal year.

Chipotle expects to open 285 to 315 new company-owned restaurants throughout the fiscal year, 80% of which will feature a Chipotlane.

In 2025, the company expects to open 315 to 345 new company-owned restaurants, over 80% of which will feature a Chipotlane.

Boatwright called the company's employees the “backbone of Chipotle.”

“We will continue to implement our five key strategies that will help us win today as we continue to develop our future,” Boatwright said. “This will help us achieve our long-term goal of reaching 7,000 restaurants in North America and evolve into a more global brand.”

CMG price promotion: Chipotle shares fell 6.05% to $56.83 in after-hours trading on Tuesday, compared with a 52-week trading range of $37.49 to $69.26.

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Photo courtesy of Chipotle.