Chipotle Mexican Grill (CMG) Q2 2024 earnings

Chipotle Mexican Grill on Wednesday reported quarterly earnings and revenue that topped analysts’ expectations as it saw higher traffic at its restaurants, bucking an industry slowdown.

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

• Earnings per share: 34 cents adjusted vs. 32 cents expected
• Revenue: $2.97 billion vs. $2.94 billion expected

The burrito chain reported second-quarter net income of $455.7 million, or 33 cents per share, up from $341.8 million, or 25 cents per share, a year earlier. Chipotle’s profits rose from the year-ago period due to price hikes that helped offset higher avocado prices and greater usage of oil to fry tortilla chips this quarter.

Excluding items, Chipotle earned 34 cents per share.

Net sales climbed 18.2% to $2.97 billion.

The company’s same-store sales rose 11.1% in the quarter, topping StreetAccount estimates of 9.2%. Traffic to its restaurants increased 8.7%, despite backlash on social media fueled by customers who said their burrito bowls are smaller. CEO Brian Niccol has denied that the company has reduced its portion sizes.

The chain brought back its chicken al pastor in March as a limited-time menu item. More customers have also been ordering its barbacoa, which underwent a name change earlier this year that added “braised beef” to improve customer awareness of the option.

Chipotle opened 52 new company-owned locations and one new international licensed restaurant during the quarter.

The company reiterated its full-year outlook that same-store sales will grow by a mid- to high-single digit percentage. Chipotle also anticipates that it will open between 285 to 315 new restaurants this year.