Chipotle Mexican Grill (CMG) Q2 2022 Results

People visit a Chipotle restaurant on February 09, 2022 in Miami, Florida.

Joe Raedle | Getty Images

Chipotle Mexican Grill reported disappointing sales on Tuesday as price increases helped boost profits but may have spooked inflation-weary customers.

The company also said it would raise prices again in August, indicating that costs continue to rise for its restaurants.

Chipotle shares rose more than 6% in extended trading.

Here’s what the company reported:

  • Earnings per share: $9.30 adjusted
  • Revenue: $2.21 billion vs $2.24 billion expected, according to analysts polled by Refinitiv

The burrito chain reported second-quarter net income of $259.9 million, or $9.25 per share, from $188 million, or $6.60 per share, a year earlier. The company said it faced higher costs for key ingredients like avocados, beef and dairy, which offset the benefit of price increases.

Excluding legal fees, restaurant closing costs and other items, Chipotle earned $9.30 per share.

Net sales climbed 17% to $2.21 billion. Same-store sales rose 10.1% in the quarter as consumers resumed ordering their burritos and tacos at Chipotle restaurants. Wall Street was expecting same-store sales growth of 10.9%, according to StreetAccount estimates.

Only 39% of transactions in the quarter came from digital orders. Delivery orders fell slightly, which helped Chipotle’s margins. While many customers appreciate the convenience of delivery, third-party companies like Doordash charge Chipotle commission fees on every order, which hurts its profits.

Looking to the third quarter, Chipotle expects same-store sales growth in the mid to high numbers. The forecast includes expected price increases for the next month.

During the second quarter, Chipotle’s board of directors approved an additional $300 million to repurchase shares of the company.

Read the full earnings report here.

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