Chipotle Mexican Grill Inc.’s second-quarter sales fell just short of expectations and the burrito chain’s third-quarter outlook suggested momentum is slowing. The shares fell in late trading.
The key measure of same-store sales rose 7.4% in the period, the company said Wednesday, trailing the average analyst estimate of 7.7%. Chipotle sees that metric rising in the “low to mid-single digit range” in the third quarter, implying a slowdown from the previous period.
Restaurant operating margins rose from year-ago levels because of rising sales and lower avocado prices. Chipotle’s earnings per share, excluding some items, were $12.65, while analysts expected $12.25.
Chipotle’s results show the company may need to work to keep diners’ interest even after improving operations and sprucing up its menu with additions such as a chicken al pastor limited-time offer.
The chain’s shares fell 8.1% at 4:26 p.m. in extended New York trading. The stock has advanced 50% in 2023 through Wednesday’s close, exceeding the S&P 500 Index’s 19% gain.
--With assistance from Reade Pickert.
Author: Daniela Sirtori-Cortina and Diana Carolina Bravo
