Chipotle Mexican Grill (CMG) Q2 2023 earnings

A Chipotle restaurant in New York, US, on Monday, July 3, 2023.

Jeenah Moon | Bloomberg | Getty Images

Chipotle Mexican Grill on Wednesday reported quarterly earnings that crushed expectations, but the burrito chain’s sales fell short.

The stock fell more than 8% in extended trading. Shares were up 50% this year through Wednesday’s close.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $12.65 adjusted vs. $12.31 expected
  • Revenue: $2.51 billion vs. $2.53 billion expected

Chipotle reported second-quarter net income of $341.8 million, or $12.32 per share, up from $259.9 million, or $9.25 per share, a year earlier. 

Excluding restructuring costs, closure expenses and other items, the burrito chain earned $12.65 per share.

Restaurant-level operating margins expanded to 27.5% from 25.2% in the year-ago period. Avocado prices were lower this quarter, but higher prices for tortillas, dairy, beef and other ingredients put some pressure on the company’s profits. Last quarter, Chipotle said it was done raising menu prices after hiking them earlier to mitigate rising labor and commodity costs.

Chipotle’s net sales rose 13.6% to $2.51 billion in the second quarter. The company’s same-store sales grew 7.4%, falling shy of StreetAccount estimates of 7.5%.

Digital sales accounted for 38% of the company’s food and beverage revenue this quarter. 

Chipotle opened 47 new locations, 40 of which included drive-thru lanes to pick up digital orders.

The company reiterated its full-year forecast of same-store sales growth in the mid- to high-single digit range. However, for the third quarter, Chipotle anticipates same-store sales growth in the low- to mid-single digit range. Wall Street is anticipating same-store sales next quarter of 5.9%, according to StreetAccount.

Read the earnings release.

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