Chipotle Mexican Grill (NYSE:CMG) shares looked set to decline Thursday after it reported record second-quarter sales that still missed expectations, while earnings were well ahead of market consensus.
The fast-casual restaurant chain reported a 13.6% increase in revenue to $2.51 billion for the three months to June 30, 2023, below the $2.53 expected by analysts surveyed by Refinitiv.
Adjusted earnings per share rose by 36% to $12.65, topping the $12.31 pencilled in by the Street, per Refinitiv.
It opened 47 new restaurants over the quarter, with 40 locations including a drive-thru Chipotlane.
"Chipotle's second quarter results demonstrate our ability to drive strong performance by focusing on exceptional food and exceptional people,” chairman and CEO Brian Niccol said in a statement.
“Additionally, our investment in our employees, technology, and innovation in our restaurants along with expanding access and convenience in North America and laying the groundwork for international growth, set us up for long-term success."
The company has guided investors for third-quarter comparable sales growth in the low to mid-single digit range, with full-year sales growing in the mid to high-single digits.
It also expects to open between 255 and 285 new restaurants, including 10 to 15 relocations to add a Chipotlane.
Its shares fell 8.1% to $1,918 in pre-market trading. Year to date, they’ve gained more than 50%.
Contact the author at stephen.gunnion@proactiveinvestors.com