Texas: Chipotle Mexican Grill reported higher-than-expected earnings and revenue for the latest quarter, driven by increased restaurant traffic despite a broader industry slowdown. The company's shares initially rose by about 13 percent in extended trading but later settled around 3 percent higher.
For the quarter ending June 30, Chipotle reported adjusted earnings per share of 34 cents, surpassing the 32 cents anticipated by analysts. Revenue also exceeded expectations, reaching 2.97 billion dollars compared to the forecasted 2.94 billion dollars.
Chipotle's net income rose to 455.7 dollars million, or 33 cents per share, up from 341.8 million dollars, or 25 cents per share, a year earlier. This growth in profits was attributed to price hikes that helped mitigate increased costs for avocados and oil used to fry tortilla chips.
Notably, same-store sales for the burrito chain increased by 11.1 percent, outpacing the estimated 9.2 percent. CEO Brian Niccol mentioned that demand peaked in April and settled around 6 percent higher in June. July has been challenging to assess due to various factors, including the Fourth of July holiday, weather disruptions in Texas, and a recent tech outage.
Chipotle also noted growth in market share and increased restaurant transactions across all income levels. The chain’s customer base, which typically has higher incomes, has remained strong, unlike other consumer companies facing pullbacks from low-income customers.
During the quarter, Chipotle opened 52 new company-owned locations and one new international licensed restaurant. The company maintains its full-year outlook, expecting same-store sales to grow by a mid- to high-single-digit percentage and plans to open between 285 and 315 new restaurants this year.
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