Chipotle Mexican Grill Q2 Earnings: Revenue Beat, EPS Beat, Comps Up 11% On 'Stronger Demand Trends' And More

Chipotle Mexican Grill Inc CMG reported second-quarter financial results after the market close on Wednesday. Here’s a look at the key metrics from the quarter.

Q2 Earnings: Chipotle said second-quarter revenue increased 18.2% year-over-year to $2.97 billion, beating the consensus estimate of $2.94 billion. The fast-casual restaurant chain company reported adjusted earnings of 34 cents per share, beating analyst estimates of 32 cents per share.

Chipotle has now met or exceeded analyst estimates on the top and bottom lines in four straight quarters, according to data from Benzinga Pro.

Comparable restaurant sales increased 11.1% year-over-year driven by over 8% transaction growth as margins expanded. Digital sales represented 35.3% of food and beverage revenue. Operating margin was 19.7% in the second quarter, up from 17.2% year-over-year. 

Chipotle said it opened 52 new restaurants in the quarter, and 46 of those locations included a Chipotlane. The company also repurchased $151.4 million of its stock during the second quarter and said it has $647.7 million remaining under its share repurchase authorization.

“The second quarter was outstanding as successful brand marketing, including the return of Chicken Al Pastor, drove strong demand to our restaurants. 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, chairman and CEO of Chipotle.

Outlook: Chipotle reiterated expectations for full-year 2024 comparable restaurant sales growth in the mid to high single-digit range. The company said it still anticipates opening between 285 and 315 new restaurants in 2024 with over 80% including a Chipotlane.

Management will hold a conference call to discuss these results at 4:30 p.m. E.T.

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CMG Price Action: Chipotle shares were up 10.89% after hours at $57.42 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Chipotle.