Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Business

Chipotle has been on a hot streak with customers

by admin July 26, 2024
July 26, 2024
Chipotle has been on a hot streak with customers

Chipotle Mexican Grill on Wednesday reported quarterly earnings and revenue that topped analysts’ expectations as it saw higher traffic at its restaurants, bucking an industry slowdown.

Shares of the company rose after the closing bell. As of Wednesday’s close, Chipotle’s stock had slid 17% this month, hurt by investor concerns about the health of the restaurant industry. In late June, the company executed a 50-for-1 stock split.

From April: Chipotle reports big profit as diners shake off price increases

The burrito chain reported second-quarter net income of $455.7 million, or 33 cents per share, up from $341.8 million, or 25 cents per share, a year earlier. Chipotle’s profits rose from the year-ago period due to price hikes that helped offset higher avocado prices and greater usage of oil to fry tortilla chips this quarter.

Excluding items, Chipotle earned 34 cents per share.

Net sales climbed 18.2% to $2.97 billion.

The company’s same-store sales rose 11.1% in the quarter, topping StreetAccount estimates of 9.2%.

Demand for its food peaked in April, CEO Brian Niccol said on CNBC’s “Closing Bell: Overtime” on Wednesday. Same-store sales settled around 6% higher in June. Executives said that July has been more difficult to understand, given the Fourth of July holiday, weather disruptions in Texas and a recent tech outage.

Traffic to its restaurants increased 8.7%, despite backlash on social media fueled by customers who said their burrito bowls are smaller. The company has denied reducing its portion sizes.

“We have focused in on those with outlier portion scores based on consumer surveys, and we are re-emphasizing training and coaching around ensuring we are consistently making bowls and burritos correctly,” Niccol told analysts on the company’s conference call. “We have also leaned in and re-emphasized generous portions across all of our restaurants, as it is a core brand equity of Chipotle.”

Restaurant transactions grew across every income level, Niccol said. Other consumer companies, from PepsiCo to McDonald’s, have said in recent months that low-income customers are pulling back more, pressuring their sales. Chipotle, like many fast-casual chains, benefits from a customer base that tends to make higher incomes.

The chain brought back its chicken al pastor in March as a limited-time menu item. More customers have also been ordering its barbacoa, which underwent a name change earlier this year that added “braised beef” to improve customer awareness of the option.

Chipotle opened 52 new company-owned locations and one new international licensed restaurant during the quarter.

The company reiterated its full-year outlook that same-store sales will grow by a mid- to high-single digit percentage. Chipotle also anticipates that it will open between 285 to 315 new restaurants this year.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
U.S. economy grew at a 2.8% pace in the second quarter, much faster than expected
next post
Melodiol Global Health

Related Posts

OpenAI considering 16 states for data center campuses...

February 8, 2025

Elon Musk’s Neuralink raises $650 million in fresh...

June 4, 2025

McDonald’s announces plan to hire 375,000 employees this...

May 14, 2025

Trump transfers all his DJT shares to his...

December 21, 2024

‘Make Bitcoin Great Again’: Trump and GOP’s presence...

July 30, 2024

July 4 travel hitting a record thanks to...

July 5, 2024

Rite Aid files for second bankruptcy in two...

May 7, 2025

Some tariff concessions from Canada and Mexico touted...

February 7, 2025

There’s been a ‘meaningful shift’ in CEO confidence...

January 16, 2025

Boeing, NASA say Starliner astronaut launch will move...

May 26, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • ‘There are 50 swamps’: State Freedom Caucus Network helps conservatives fight the ‘uniparty’

      August 22, 2025
    • ‘Maine’s Mamdani’: Maine GOP chief issues warning about new challenger looking to oust Susan Collins

      August 22, 2025
    • Federal judge rules Trump appointee Alina Habba is unlawfully serving as US attorney

      August 22, 2025
    • Pentagon unveils new medal for troops deployed in Trump’s southern border crackdown

      August 22, 2025
    • Zelenskyy seeks ‘strong reaction’ from US if Putin is not ready for bilateral meeting

      August 22, 2025

    Categories

    • Business (1,073)
    • Investing (2,887)
    • Politics (3,527)
    • Stocks (1,155)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved