What Investors Need to Know About Chipotle’s Q2 Earnings Report

Chipotle's Q2 Earnings Report

The market has closed, and Chipotle’s Q2 earnings report has finally been released. Chipotle Mexican Grill (NYSE:$CMG) surpassed analyst expectations. However, the Colorado-based company missed revenue estimates.

Chipotle’s Q2 Earnings Report At a Glance:

 

  • Earnings Per Share: $2.32 vs. $2.18 expected, according to Thomson Reuters

 

  • Revenue: $1.17 billion vs. $1.19 billion expected, according to Thomson Reuters

 

  • United States same-store sales: 8.1% vs. 9.7% expected, according to StreetAccount

 

After the closing bell, Chipotle reported earnings of $2.32 per share on $1.17 billion in revenue, which surpassed analyst expectations of $2.18 per share on $1.19 billion in revenue.

The burrito chain stated that same-store sales increased 8.1% during the quarter. This, of course, disappointed Wall Street, which had forecasted that the company would announce same-store sales growth of 9.7%, according to StreetAccount.

In addition, Chipotle said that sales increased due to improved consumer traffic, reduced promotional activity and a boost in average check.

“We saw encouraging signs in our improved financial results during the first half of the year. Recent events, however, have shown that we still have a lot of opportunity to improve our operations and deliver the outstanding experience that our customers expect,” CEO Steve Ells said.

In the Q2 earnings report, Chipotle echoed its full-year 2017 outlook for same-store sales to grow in the high-single digits.

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