In the second quarter of 2022, Chipotle Mexican Grill reported higher revenue as consumers continued to show their support for the popular burrito chain. However, the company noted that certain food costs were impacted by inflation.
- Net income for the quarter was $341.8 million, or $12.32 per share, compared to $259.9 million, or $9.25 per share, in the same period last year. This represents a significant increase.
- Adjusted earnings per share were $12.65, surpassing analysts' estimates of $12.31.
Revenue and Sales
- Chipotle's revenue increased by 14% to reach $2.51 billion in the second quarter. Analysts had expected revenue to be slightly higher at $2.53 billion.
- Comparable restaurant sales rose by 7.4% compared to the previous year.
- In-restaurant sales saw an impressive increase of nearly 16% during this period.
- Digital sales accounted for 38% of food and beverage revenue.
Food Costs and Expansion
- The company stated that food, beverage, and packaging costs decreased by approximately 100 basis points from the second quarter of 2022. This was due to higher menu prices implemented in the prior year and lower avocado prices. However, these savings were partially offset by inflation affecting various food costs such as beef, dairy, and salsa.
- Chipotle expanded its presence by opening 47 new restaurants, 40 of which included "Chipotlanes," online-only order lanes.
Chipotle Mexican Grill's solid financial performance in Q2 2022 showcases its ability to attract loyal customers despite challenges posed by inflation. The company's focus on innovation, including its successful digital sales strategy and innovative order lanes, demonstrates its commitment to meeting the evolving needs of consumers.