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Helped by ongoing strength in digital orders and the “strong recovery” of in-restaurant sales, Chipotle Mexican Grill Inc. on Tuesday reported that its revenue rose by nearly 40% in the second quarter.
Chipotle
CMG,
shares rose toward record highs in after-hours trading, jumping more than 4% after they increased 1.4% in the regular session to close at $1,574.35. If those gains hold into Wednesday’s trading session, they would top the intraday record high of $1,626.57.
The restaurant chain reported net income of $188 million, or $6.60 a share, compared with $8.2 million, or 29 cents a share, in the year-ago period, when the COVID-19 pandemic had some of its strongest effects. Adjusted for performance stock unit adjustments, plus restaurant-closure and other costs, earnings were $7.46 a share, up from 40 cents a share on an adjusted bases the year before. Revenue rose 38.7% to $1.9 billion from $1.36 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast adjusted earnings of $6.53 a share on revenue of $1.88 billion.
Brian Niccol, chairman and chief executive of Chipotle, said in a statement that the company is enjoying “growing momentum.” Chipotle opened 56 new restaurants, including one relocation, and closed five, the company said. Comparable-restaurant sales rose 31.2%.
“Strong restaurant-level economics combined with significant restaurant growth should allow us to optimize earnings power for many years to come,” Niccol added. During the company’s earnings call, he mentioned that second-quarter digital sales increased 11% year over year and now make up almost 49% of overall sales.
Chipotle’s executives mentioned continued uncertainty about the coronavirus pandemic, but said they expect third-quarter comparable-restaurant sales growth in the low- to mid double-digits range. The company also said it plans to open 200 or more restaurants this year.
Shares of Chipotle have risen nearly 14% year to date, and are up more than 35% in the past year. By comparison, the S&P 500 index
SPX,
has climbed 15.3% so far this year, and has seen a 33% increase in the past 52 weeks.
