Chipotle Mexican Grill Reports Q2 Earnings and Updates Outlook
Chipotle Mexican Grill (CMG) reported second-quarter revenue of $3.3 billion, a 9.3% increase year-over-year driven by 2.2% comparable-sales growth and higher transactions. Adjusted earnings per share remained flat at $0.33. The company's restaurant-level margin declined to 25.2%, down 220 basis points due to rising food, labor, marketing, and operating costs. Chipotle revised its Q3 outlook for comparable-sales growth to approximately 1% amid industry concerns over Cyclospora contamination and broader consumer caution in the second half of July. The company raised its full-year sales-growth forecast to low-single-digit levels and expects pricing increases to reach mid-2% by Q3. It also opened 101 new locations during the quarter, with plans for around 350 openings this year. The firm continued investing in digital rewards, staffing initiatives like 'Linebacker,' and its High-Efficiency Equipment Package (HEAP). Chipotle repurchased $631 million of stock and authorized an additional $1.3 billion in buybacks.
Tickers: $CMG
Topics: comparable-sales_growth margin_pressure new_locations restaurant_sales stock_repurchase