David Paul Morris | Bloomberg Getty Images
Chipotle Mexican Grill reported similar same-store sales growth of more than 8% on Wednesday, but a change to delivery has led to an increase in costs and resulted in fewer beverage purchases, leading to a drop in its net income .
Shares of the company fell more than 5% after hours of trading.
The company reported for the quarter ended September 30, compared to what Wall Street had expected, based on a survey of refinery analysts.
- 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 $ 98.2 million, or $ 3.47 per share, a year earlier. The higher volume of deliveries and increased steak orders and more expensive beef costs, which were partially offset by increased menu price, lower salsa use and lower avocado prices.
The Burrito series earned $ 3.76 per share, according to the $ 3.47 per share expected by analysts polled by Refinitive, excluding $ 28.7 million in legal expenses and other items.
gross sales Up 14.1% to $ 1.6 billion, which is lower than expected at $ 1.59 billion. Same-store sales increased 8.3% in August, reaching a climax. Strong demand continued in September, but the company reported higher high-store sales growth in the same month due to the launch of its Carne Asada option.
For the second consecutive quarter, digital sales have more than tripled. Online orders accounted for nearly half of all sales, and nearly half of Chipotle’s digital customers placed their orders.
Delivery service revenue, which includes delivery and service fees paid by customers to Chipotle through its app and website, accounts for 1.3% of its total sales. The company said that revenue collected from customers does not fully pay the commission fee it pays to third-party distribution providers such as DoorDash and Grubh.
Chipotle once again declined to provide an outlook for 2020, citing the uncertainty of the epidemic.
Read the full earnings report here.
This is a breaking news. Please check back for updates.