July 3, 2023, a Chipotle restaurant in New York.
Gina Moon | Bloomberg | Getty Images
Chipotle Mexican BBQ The company reported quarterly profit and revenue Wednesday that beat analysts’ expectations as traffic increased at its restaurants despite an industry slowdown.
The company’s shares rose more than 7% in after-hours trading.
The company’s report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Earnings per share: 34 cents adjusted, 32 cents expected
- Revenue: $2.97 billion, $2.94 billion expected
The taco chain reported second-quarter net income of $455.7 million, or 33 cents a share, up from $341.8 million, or 25 cents a share, a year earlier. Chipotle’s profit rose from a year earlier as higher prices offset higher avocado prices and greater use of oil in fried nachos this season.
Excluding items, Chipotle earned 34 cents per share.
Net sales grew 18.2% to $2.97 billion.
The company’s same-store sales grew 11.1% in the quarter, exceeding StreetAccount’s forecast of 9.2%. Despite backlash on social media after customers said their burrito bowls were smaller, traffic at the company’s restaurants increased 8.7%. Chief Executive Brian Nicol denied the company had reduced portion sizes.
The chain reintroduced the chicken al pastor as a limited-time menu item in March. More customers are also starting to order Barbacoa, which was rebranded earlier this year to add “braised beef” to increase customer awareness of the option.
During the quarter, Chipotle opened 52 new company-owned stores and one new international licensed restaurant.
The company reiterated its full-year forecast that same-store sales will grow by a mid- to high-single-digit percentage. Chipotle also expects to open 285 to 315 new restaurants this year.
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