On July 30, Chipotle Mexican Grill rose 6.63% in regular trading, trading at $38.285/share, with turnover of $3.92 billion. The rally was driven by the company's stronger-than-expected Q2 earnings release and an upward revision to its full-year outlook.
The company reported Q2 earnings of $0.33 per share on revenue of $3.35 billion, both surpassing market expectations of $0.32 EPS and approximately 7.03% year-over-year revenue growth. Same-store sales grew 2.2%, with average ticket up 1.2% and transactions up 1%. Digital sales reached 38.3% of total food revenue, up from 35.5% a year ago. The company raised its full-year same-store sales guidance from \"flat\" to \"low single-digit growth\" and announced a $1.3 billion share buyback plan.
However, management cautioned that Q3 will be the most challenging quarter, as a Cyclospora outbreak slowed customer traffic in the second half of July, with Q3 same-store sales growth expected at approximately 1%. On the cost side, packaging costs rose to 29.7% of revenue from 28.9%, pressured by higher beef and freight prices.
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