Chipotle income, sales, traffic rise in strong quarter
Chipotle Mexican Grill reported another strong quarter as it continues to buck industry trends with rising sales and restaurant traffic.
“We’re gaining market share every month,” CEO and chairman Brian Niccol told analysts on the company’s earnings call. “As we stay focused on executing our core business, we see results not only in comps and transactions, but also with the market share gains we’re making.”
The quick-service chain posted net income of $455.7 million, or $0.33 per share, for the quarter ended June 30, up from $341.8 million, or $0.25 per share, in the year-ago period. Adjusted earnings came to $0.34 per share, topping analysts’ estimates of $0.32 per share.
Net sales jumped 18.2% to $2.97 billion, ahead of the $2.94 billion analysts expected. Same-store sales rose 11.1%, fueled by higher transactions of 8.7% and a 2.4% increase in the average check. Digital sales represented 35.3% of total food and beverage revenue.
Chipotle opened 52 new locations and one new international licensed restaurant during the quarter. It expects to open between 285 and 315 new restaurants this year as it works towards its long-term goal of doubling its store count to 7,000 locations.
"The second quarter was outstanding as successful brand marketing, including the return of Chicken Al Pastor, drove strong demand to our restaurants,” Niccol said in the earnings release. “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.”
The company reiterated its full-year outlook that same-store sales will increase by a mid- to high-single-digit percentage. Chipotle also anticipates that it will open between 285 and 315 new restaurants this year.
Chipotle operated 3,500 restaurants as of June 30, 2024, in the United States, Canada, the United Kingdom, France, Germany and Kuwait. It is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe.
