Chipotle reports $1.3bn revenue in Q2 2018

27th July 2018 (Last Updated July 27th, 2018 12:55)

American fast casual chain Chipotle Mexican Grill has reported revenue of $1.3bn for the second quarter (Q2) ending 30 June 2018, a 8.3% increase compared to $1.16bn for the same period last year.

Chipotle reports $1.3bn revenue in Q2 2018
Chipotle Mexican Grill has reported revenue of $1.3bn for Q2 2018. Credit: Aranami.

Chipotle Mexican Grill has reported revenue of $1.3bn for the second quarter (Q2) ending 30 June, an 8.3% increase compared to $1.16bn for the same period last year.

Revenue increases were driven by new restaurant openings and to a lesser extent by a 3.3% increase in comparable restaurant sales.

Chipotle also reported net income of $46.88m, a 29.7% fall from $66.7m for the same period in the previous year.

The company’s restaurant operating margin was 19.7%, a rise from 18.8% last year.

Growth was driven by a 3.3% increase in comparable restaurant sales combined with lower marketing and promotional spend. It was partially offset by wage inflation at the crew level.

“I firmly believe we can accelerate that progress by executing our reorganisation and our strategy to win today and cultivate tomorrow.”

Chipotle chief executive officer Brian Niccol said: “I’m pleased to report a solid second quarter with sales and restaurant margins ahead of expectations.

“While we made progress during the quarter with particular strength in digital sales, I firmly believe we can accelerate that progress by executing our reorganisation and our strategy to win today and cultivate tomorrow.”

In addition, the restaurant chain opened 34 new restaurants, as well as closed or relocated eight properties, including the closure of five Pizzeria Locale branches. This brings the total restaurant count to 2,467.

Revenue for the first six months of 2018 was $2.4bn, up 7.9% from the first six months of last year. The increase was driven by restaurant openings and a 2.8% rise in comparable sales.

Net income for the first six months of 2018 was $106.3m, or $3.81 per diluted share, compared to net income of $112.9m last year.