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Chipotle lifts full-year guidance after Q2 comp sales accelerate

Chipotle said adjusted EPS of 33 cents in Q2 was flat year over year, while it added 100 new stores and raised annual guidance.

Reported · Written up by our desk · Results

Chipotle Mexican Grill reported Q2 results that were mixed versus consensus, but the market reaction underscored investor relief after fears of a bigger slowdown. The company posted revenue growth of 9.3% supported by a 2.2% comp-store gain and the opening of 100 new stores.

Comps accelerated versus the prior quarter as Chipotle reinvigorated customer demand. The outlet said the check rose 1.2%, backed by higher prices, while transactions increased 1%.

Margins were under pressure across multiple levels, with gross, restaurant-level, and operating margins all contracting. Still, Chipotle’s net result came in better than expected, and adjusted earnings per share of 33 cents was flat versus last year, but one penny ahead of estimates.

Looking ahead, Chipotle tied its growth and recovery focus to initiatives including Chipotlanes and digital sales, which it highlighted as higher-margin channels. After the stronger Q2 comp performance, management increased its full-year guidance, indicating consensus forecasts may be too conservative.

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