Chipotle Mexican Grill connected Wednesday chopped its forecast for same-store income growth this year after traffic declined for a second consecutive quarter.
The burrito concatenation present anticipates level same-store income maturation for 2025, down from its anterior projection of a low-single-digit percentage increase. Chipotle trimmed its same-store income outlook for the second consecutive quarter.
But the institution said income trends are turning around. Starting successful June, customers person been returning to Chipotle restaurants, acknowledgment to its summertime promotions and the motorboat of its Adobo Ranch dip, CEO Scott Boatwright said connected CNBC's "Closing Bell: Overtime."
Shares of the institution fell 9% successful extended trading.
Here's what the institution reported for its 2nd quarter compared with what Wall Street was expecting, based connected a survey of analysts by LSEG:
- Earnings per share: 33 cents adjusted, successful enactment with expectations
- Revenue: $3.06 cardinal vs. $3.11 cardinal expected
Chipotle's nett sales rose 3% to $3.06 billion, acknowledgment to its caller restaurants. But the company's same-store income shrank 4%, steeper than past quarter's diminution of 0.4% and StreetAccount estimates of a 2.9% alteration for the 2nd quarter. Average cheque accrued astir 1%, partially offsetting postulation declines of 4.9%.
Last year, Chipotle outpaced the remainder of the edifice industry, bucking a inclination of sluggish income and postulation declines. But by the extremity of December, the institution started seeing softer sales, which executives chalked up to the timing of Christmas and New Year's Eve. That was followed by atrocious upwind successful January, including wildfires successful California, and a broader user pullback successful February that continued into the spring.
During the company's first-quarter net call, Boatwright said diners' concerns astir the system led them to skip edifice visits and prevention their wealth instead.
May was different pugnacious period for Chipotle, paralleling the driblet successful user sentiment during the aforesaid period, according to Boatwright. However, by June, same-store income began expanding again.
"Exiting the quarter, we returned to affirmative comp and transaction trends, which person continued into July," Boatwright told analysts connected the company's league call.
He aboriginal reiterated the company's content that it tin instrumentality to same-store income maturation successful the mid-single digits successful the agelong word and execute mean portion volumes for its restaurants of $4 million.
"There's nary smoking weapon present that says we've had a misstep, and that gives america assurance to enactment connected strategy, innovate wherever we tin effort to conscionable the user wherever they are, successful our ain unsocial Chipotle way, but much importantly, to truly proceed execution successful the restaurant, delivering large squad subordinate experiences and large impermanent experiences," Boatwright said.
Chipotle reported second-quarter nett income of $436.1 million, oregon 32 cents per share, down from $455.7 million, oregon 33 cents per share, a twelvemonth earlier.
Excluding impairment charges, ineligible costs and different items, the institution earned 33 cents per share.
Chipotle reiterated its forecast that it would unfastened betwixt 315 and 345 caller restaurants this year.
English (US) ·