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Chipotle's Net Earnings Double, Shares Rise

Chipotle's Net Earnings Double, Shares Rise

Wednesday, July 26th, 2017

This Tuesday, July 25, Chipotle Mexican Grill announced its second quarter financial results, and the surprising figures caused a jump in after-hours trading, as news of the company’s impressive earnings—including more-than-doubled net income—hit home with investors.

Steve Ells, Founder, Chairman, CEO, Chipotle

“We saw encouraging signs in our improved financial results during the first half of the year. Recent events, however, have shown that we still have a lot of opportunity to improve our operations and deliver the outstanding experience that our customers expect,” said Steve Ells, Founder and Chairman, a press release. “We will continue to strengthen our teams, enhance our technology, and expand our menu offerings in order to delight every customer who visits us.”

Revenue for the three month period ending June 30tth rose a sizeable 17.1 percent to $1.17 billion, with same store sales increasing 8.1 percent in the quarter. Perhaps the most dramatic announcement the company made was its growth in net income; the company netted $66.7 million, a 161 percent increase, compared with $25.6 million earned in the second quarter of last year. 

Chipotle Storefront

News source Reuters reported that as of the evening of July 25, the company’s stock rose more than two percent in after-hours trading. Morning trading saw those gains diminish, but this may be an auspicious sign for the company that has seen its share of negative headlines in the last month.

Other highlights from the company’s Q2 financial report include:

  • Restaurant level operating margin increased to 18.8 percent from 15.5 percent
  • Diluted earnings per share was $2.32, an increase from $0.87
  • Opened 50 new restaurants, and closed two restaurants

For more on this and other fresh-focused companies our industry, stay tuned to Deli Market News.