Chipotle's Net Earnings Double, Shares Rise
DENVER, CO – Chipotle Mexican Grill announced its second quarter financial results this week and caused a hiccup in after-hours trading that day, as news of the company’s impressive earnings—including more-than-doubled net income—registered with investors.
“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, Chairman, in the company's 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 company’s second quarter, the three month period ending June 30th, rose a sizeable 17.1 percent to $1.17 billion, with same store sales increasing 8.1 percent. Perhaps the most dramatic growth, the company announced, could be found in net income, which increased 161 percent to $66.7 million compared to $25.6 million in the second quarter of last year.
News source Reuters reported that as of the evening of July 25, the date Chipotle announced its earnings, the company’s stock had risen more than two percent in after-hours trading. This morning 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 of 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
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