Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Mexican grill Chipotle On Wednesday, the sales growth in the same store was reduced after the traffic decreased by the second quarter.
Currently, the Burrito network suggests that sales growth in the same store in 2025, having decreased from the previous projection to a low -percentage growth. Chipotle cut a sales view in the same store in the second quarter in a row.
But the company said the sales trends are turning. Starting in June, customers are returning to the Chipotle restaurants, thanks to their summer stocks and launching their Dip Adobo Ranch, CEO Scott Babotit said at CNBC “Final Bell: Overtime.”
The company’s shares decreased by 9% in extended bidding.
That’s what the company reported for its second quarter compared to what Wall -Rate was waiting for, based on a LSEG analyst poll:
- Profit per share: 33 cents, settled according to expectations
- Income: 3.06 billion dollars against $ 3.11 billion expected
Chipotle’s net sales rose by 3% to $ 3.06 billion, thanks to its new restaurants. But the sales at the same store company decreased by 4%, which is greater than the decline in the last quarter by 0.4% and Streitaccont estimates by 2.9% in the second quarter. The average check increased by approximately 1%, partially compensating for the traffic decline by 4.9%.
Last year, Chipotle exceeded the rest of the restaurant industry, exposing the trends of sluggish sales and reducing traffic. But by the end of December, the company began to see softer sales that the executives rose to Christmas and New Year. Then the bad weather happened in January, including forest fires in California, and a wide rolling of consumers in February, which continued in the spring.
During the call for profits in the first quarter of Boatwright, it said the concern of the economy forced them to miss a visit to the restaurant and save their money.
According to Boatwrigight, there may be another hard month for Chipotle, in parallel to the fall of consumers. However, by June, sales in the same store began to increase again.
“When we leaving the quarter, we returned to the positive trends and transactions that continue in July,” Babotit analysts said at the company’s conference.
He later confirmed the company’s conviction that she could return to sales growth in the same store in the average unambiguous figures and reach the average volume of units for its $ 4 million restaurants.
“There is no smoking pistol here, which says we had a mistaken step, and it gives us confidence to stay on a strategy, innovation where we can try to meet the consumer, where they are, on their own unique Chipotle, but, more importantly, to continue the implementation at the restaurant, providing excellent experience.”
Chipotle reported net income in the second quarter of $ 436.1 million, or 32 cents per share, which decreased compared to $ 455.7 million, or 33 cents per share a year earlier.
With the exception of the violation fee, court costs and other items, the company earned 33 cents per share.
Chipotle repeated its forecast that it would open from 315 to 345 new restaurants this year.
