Chipotle Mexican Grill (CMG) Q2 2022 earnings

Individuals go to a Chipotle restaurant on February 09, 2022 in Miami, Florida.

Joe Raedle | Getty Pictures

Chipotle Mexican Grill on Tuesday reported disappointing gross sales as worth hikes helped enhance income however could have scared away inflation-weary prospects.

The corporate additionally mentioned it could increase costs once more in August, indicating that prices preserve rising for its eating places.

Shares of Chipotle rose greater than 8% in prolonged buying and selling.

Here is what the corporate reported in contrast with what Wall Road was anticipating, primarily based on a survey of analysts by Refinitiv:

  • Earnings per share: $9.30 adjusted vs. $9.04 anticipated
  • Income: $2.21 billion vs. $2.24 billion anticipated

The burrito chain reported second-quarter web revenue of $259.9 million, or $9.25 per share, up from $188 million, or $6.60 per share, a yr earlier. The corporate mentioned it confronted increased prices for key substances like avocados, beef and dairy, which offset the profit from worth will increase.

Excluding authorized prices, restaurant closure bills and different objects, Chipotle earned $9.30 per share.

Internet gross sales climbed 17% to $2.21 billion. Identical-store gross sales rose 10.1% within the quarter as shoppers resumed ordering their burritos and tacos at Chipotle eating places. Wall Road was anticipating same-store gross sales progress of 10.9%, based on StreetAccount estimates.

Solely 39% of transactions in the course of the quarter got here from digital orders. Supply orders fell barely, which helped Chipotle’s margins. Whereas many shoppers love the comfort of supply, third-party corporations like Doordash cost Chipotle fee charges on each order, weighing on its income.

Trying to the third quarter, Chipotle is projecting same-store gross sales progress within the mid- to high-single digits. The forecast contains subsequent month’s deliberate worth will increase.

In the course of the second quarter, Chipotle’s board accredited an extra $300 million to repurchase shares of the corporate.

Read the full earnings report here.

Source link

Similar Posts

Leave a Reply