Shares of Chipotle Mexican Grill (CMG) - Get Chipotle Mexican Grill Inc. Report rose in after-hours trading Tuesday, as the restaurant chain reported stronger-than-expected results for the second quarter.
Net income registered $187.97 million, or $6.60 a share, up from $8.18 million, or 29 cents, last year, when Covid raged. The FactSet analyst consensus called for profit of $6.50 per share in the latest quarter.
Adjusted profit totaled $7.46 a share in the latest quarter, up from 40 cents a year ago. Analysts had forecast $6.53 for the latest quarter.
Revenue soared 39% to $1.89 billion in the latest quarter from $1.36 billion a year earlier. The analyst consensus called for $1.88 billion in the latest quarter.
Chipotle stock recently stood at $1,644, up 4% in after-hours trading, and gained 10% in the six months through Tuesday’s close.
Chipotle expects comparable restaurant sales growth in the low- to mid-double digits in the third quarter.
"We remain confident in our key growth strategies and believe they will help us achieve our next goal of $3 million average unit volumes with industry leading returns on invested capital that improve, as we continue to add Chipotlanes [drive-through lanes],” said Chipotle Chief Executive Brian Niccol.
Last month, Raymond James analyst Brian Vaccaro upgraded Chipotle to strong buy from outperform with an $1,800 price target.
He was bullish on the company's recent menu-price increase, designed to help Chipotle pay for its recent increases in employees' wages and benefits.
Chipotle has "a very strong value proposition," and the price increases will prompt "limited customer resistance,” Vaccaro wrote.