Chipotle reported a strong Q2 with revenue and earnings beating expectations, solid same-store growth, and announced expansion plans including 53 openings in the quarter.
Chipotle Mexican Grill (NYSE:CMG) shares rose sharply in ‘afterhours’ trading, before dropping back a bit, after strong demand for burritos and rice bowls saw quarterly financials ahead of Wall Street’s forecasts.
Second quarter revenue of $2.97 billion exceeding a Wall Street consensus forecast of $2.94 billion.
At $455.7 million net income was up significantly year-over-year, from $341.8 million in 2023. On a per share basis, Chipotle’s earnings were reported at 34 cents, easing past the market’s forecast for 32 cents.
The quick-service restaurant chain said its comparable sales increased by 11.1%, driven by consistent demand for rice bowls and burritos.
"The second quarter was outstanding as successful brand marketing,” chief executive Brian Niccol said in a statement.
He added: “Our focus and training around throughput paid off as we were able to meet the stronger demand trends with terrific service and speed driving over 8% transaction growth in the quarter," said Brian Niccol.
Chipotle repeated its full-year outlook for same-store sales growth “in the mid-to-high single digits” and said it plans to open between 285 to 315 new restaurants this year. It opened 53 new locations in its second quarter.
After initially spiking to $59.61 after the release, Chipotle shares eased back and were up $1.07 or 2% following an hour of late trading, changing hands at around $53.00.
Chipotle previously closed the regular trading session at $51.78.
