By Dhirendra Tripathi
Investing.com – Chipotle (NYSE:CMG) stock jumped 8% Wednesday after the company gave positive guidance for the upcoming quarter after declining to do so earlier this year.
The burrito restaurant chain expects third-quarter comparable sales growth in the low to mid double-digits range. During the calendar year, it also hopes to have opened 200 or more restaurants.
Revenue increased 39%, to $1.9 billion, and comparable restaurant sales rose 31% as customers came back after a year of the pandemic. Digital sales and menu price increases also helped boost revenue.
Net income for the second quarter was $188 million, a 23-times increase from $8.2 million in the June quarter of 2020. Lower promotional expenses and cheaper beef aided higher earnings.
According to Chipotle Chairman and CEO Brian Niccol, in-restaurant sales recovered strongly as customers reacted positively to its new menu items. A low base last year also made the 2021 quarter’s numbers look more impressive.
Digital sales grew 10.5% year over year to $916.5 million and represented 48.5% of sales. A little more than half of the digital sales were from order ahead transactions as guests took to the convenience of the platform.
Adjusted diluted earnings per share was $7.46, a near 19-fold jump from the same quarter a year ago.