Chipotle reports $4.9bn revenues in FY2018

Chipotle Mexican Grill has reported revenues of $4.9bn for the fiscal year ending 31 December 2018 (FY2018), an 8.7% increase from the same period in the previous year.

The growth was reportedly driven by new restaurant openings and a 4% increase in comparable restaurant sales.

Chipotle also reported a net income of $176.6m or $6.31 per diluted share, compared to $176.3m or $6.17 per diluted share in the previous year.

The company’s restaurant level operating margin was 18.7%, a rise from 16.9% last year.

Growth was driven primarily by an increase in comparable restaurant sales combined with lower marketing and promotional spend. It was partially offset by wage inflation at the crew level.

Chipotle CEO Brian Niccol said: “I’m very pleased to report strong fourth quarter results with 6.1% comparable restaurant sales growth that included 2% transaction growth.

“For the full year, Chipotle’s average unit volumes exceeded $2m with digital sales surpassing half a billion dollars. The growth acceleration this quarter gives us confidence that our strategy is working.

“When we connect with guests through great operations, relevant marketing focused on Chipotle’s great taste and real ingredients, and provide more convenient access, they respond enthusiastically.”

In addition, the company reported a 42.4% increase in digital sales during the year.

Chipotle opened 137 new restaurants, as well as closed or relocated 54 properties during the year. This brings the total restaurant count to 2,491.