Chipotle Mexican Grill Inc (NYSE: CMG) reported second-quarter financial results on Wednesday. Here's a rundown of the report and a look at why shares are getting cooked after the close.
Q2 Earnings: Chipotle said second-quarter revenue increased 13.6% year-over-year to $2.51 billion, which missed the consensus estimate of $2.53 billion, according to Benzinga Pro. The company reported quarterly earnings of $12.65 per share, which beat analyst estimates of $12.31 per share.
Comparable restaurant sales increased 7.4% year-over-year, and in-restaurant sales jumped 15.8%. Digital sales represented 38% of food and beverage revenue. Operating margin was 17.2% in the second quarter, up from 15.3% year-over-year.
Food, beverage and packaging costs in the second quarter were 29.4% of total revenue, a decrease of about 100 basis points year-over-year, driven by lower avocado costs.
Chipotle said it opened 47 new restaurants in the quarter, and 40 of those locations included a Chipotlane.
"Chipotle's second quarter results demonstrate our ability to drive strong performance by focusing on exceptional food and exceptional people," said Brian Niccol, chairman and CEO of Chipotle.
"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."
Outlook: Chipotle said it expects third-quarter comparable restaurant sales growth to be in the low to mid-single-digit range. Full-year comparable restaurant sales growth is expected to be in the mid to high-single-digit range.
The company anticipates opening 255 to 285 new locations in the full-year 2023.
Management will hold a conference call to discuss these results at 4:30 p.m. ET.
CMG Price Action: Chipotle shares were down 8.04% after hours at $1,920.00 at the time of publication, according to Benzinga Pro.