Chipotle Raises Full-Year Guidance After Strong Q2 Performance
Shares of Chipotle Mexican Grill (CMG) rose by over 12% on Thursday after the company raised its full-year sales growth forecast. In the second quarter, revenue increased to $3.3 billion year-over-year due to new store openings and higher same-store sales. The chain also opened 100 new locations, with many featuring fast drive-thru lanes that have helped boost digital orders. Despite rising costs for beef, freight, and labor, which impacted profit margins, Chipotle's management expressed confidence in its growth strategy. Digital sales now account for nearly 38% of total revenue, up from 35.5% a year ago. The company raised guidance to expect low-single-digit same-store sales growth this year and plans to open between 350 and 370 new restaurants by the end of 2026. Chipotle's CFO highlighted that its expansion strategy is delivering strong returns, with new stores generating about a 60% cash-on-cash return within two years. The stock has been volatile recently but surged following this positive earnings update.
Tickers: $CMG
Topics: digital orders restaurant industry same-store sales growth store expansion