Chipotle Smashes in its Q2 Report and Hits All-time Highs

Chipotle shares were up a little over 3% in after-hours trading on Tuesday after the burrito restaurant chain delivered second quarter financial results.

For the second quarter, Chipotle reported revenue of $1.43 billion. This is in comparison to the $1.41 billion that was expected. Revenue saw a growth of 13% year over year. Adjusted earnings per share at $3.99 was also better than the $3.76 that was expected. Same-store sales at +10% was also a beat compared to the 8.4% waited for.

Chipotle also revealed that digital sales grew 99% during the second quarter and accounted for more than 18% of total sales.

“We’re pleased with our financial performance, which marks the sixth consecutive quarter of accelerating comps and reflects continued progress on our key strategic initiatives,” said CEO Brian Niccol.

He added, “These strong results were delivered despite a tougher year over year comparison and benefited from better restaurant operations, more effective marketing, and leveraging our digital make line to grow sales and expand access.”

He also said on the earnings call, “For the quarter, we reported 10% comparable restaurant sales growth that included nearly 7% transaction growth, restaurant level margins of 20.9% which is 120 basis points higher than last year, earnings per share adjusted for unusual items of $3.99 representing 39% year-over-year growth and digital sales growth of 99% year-over-year representing 18.2% of sales. These strong results were delivered despite the tougher year-over-year comparison and benefited from better execution, on four key initiatives we mentioned on last year’s call, specifically revamping our marketing, creating a stage-gate process for innovations, leveraging our second make line to grow digital sales and expand access and engaging with our customers by launching a new loyalty program. All of these efforts are layered on top of our foundational work to run successful restaurants with great hospitality and throughput.”

Chipotle also revealed that food, beverage and packaging costs were 33.7% of total revenue, which was a 110 basis point increase from the same period last year.

Looking ahead, the company has increases its same-store sales growth outlook and expects high single digit same-store sales growth. Previously Chipotle had expected mid to single digit range.

The company also said that it expects 140 to 155 new stores to open this year.

Disclaimer: We have no position in Chipotle Mexican Grill, Inc. (NYSE: CMG) and have not been compensated for this article.