Chipotle Mexican Grill (CMG) and AT&T (T) released their latest earnings reports after closing bell tonight. Chipotle posted earnings of $1.60 per share on $1.07 billion in sales, compared to the Wall Street estimates of $1.29 per share and $1.05 billion. In the same quarter a year ago, the fast-casual dining chain reported 88 cents per share in losses on $834.5 million in sales.
AT&T posted adjusted earnings of 74 cents per share on $39.4 billion in revenue, while Wall Street was looking for 74 cents per share on $40.57 billion in revenue. In the year-ago quarter, the company reported 72 cents per share and $40.5 billion in revenue.
Chipotle Mexican Grill soars on earnings beat
Chipotle Mexican Grill swung to a profit of $46.1 million from the year-ago net loss of $26.4 million. Comparable restaurant sales grew 17.8%, marking a significant improvement as the company exacted its turnaround. The company said improved customer traffic, reduced promotional activities, and increased average check size drove the strong increase in comparable sales. The restaurant level operating margin rose to 17.7% from 6.8% last year. Food costs were 33.8% of revenue, a decline of 150 basis points year over year.
For the full year, Chipotle Mexican Grill expects comparable restaurant sales to grow in the high-single digits. Shares of Chipotle surged by more than 5% to as much as $497.50 in after-hours trades.
AT&T’s earnings fall
By AT&T [Public domain], via Wikimedia Commons
AT&T’s GAAP earnings per share fell to 56 cents from 61 cents per share in the same quarter a year ago. The company added 2.7 million wireless subscribers, including 2.1 million in the U.S. and 633,000 in Mexico. It had its best-ever first-quarter postpaid phone churn rate in the U.S. at 0.9%, and the wireless postpaid churn rate in the U.S. stood at 1.12%, including pressure from tablets.
AT&T’s Entertainment Group added 242,000 IP broadband subscribers and had a total of 115,000 broadband net adds. The company had 4.6 million AT&T Fiber customer locations and plans to add 2 million more this year.
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