Chipotle earnings expectations call for $3.33 billion in revenue
Analysts expect Chipotle to show modest same-store sales growth after recent traffic weakness and pressure on value-conscious diners.
By Daniel Okafor · Business Editor
2 min read
Chipotle earnings expectations call for second-quarter revenue of $3.33 billion and earnings of 32 cents a share, according to analysts surveyed by LSEG. CNBC reported that the burrito chain is due to release results after the market closes Wednesday, giving investors a fresh read on whether customer traffic has stabilized.
The report comes after a weaker stretch for Chipotle Mexican Grill, whose shares have fallen more than 7% this year, according to CNBC. That decline has pulled the company’s market value to about $44 billion.
What is Chipotle expected to report?
Wall Street analysts surveyed by LSEG expect Chipotle to post earnings per share of 32 cents on revenue of $3.33 billion. They also expect same-store sales to rise 1.4% in the quarter, CNBC reported.
Same-store sales measure sales at restaurants open long enough to make a fair comparison with prior periods. For restaurant chains, the figure is closely watched because it can show whether growth is coming from stronger demand at existing locations rather than only from opening new stores.
Chipotle reported a 0.5% same-store sales increase in the previous quarter, according to CNBC. That result surprised Wall Street after analysts had expected a second straight quarter of declines.
The company had been under pressure as value-conscious consumers cut back on visits, CNBC reported. Analysts now expect that slowdown to have been brief, even as higher gas prices and other household budget pressures weigh on diners.
What has Chipotle said about full-year sales?
For the full year, Chipotle has forecast flat same-store sales, according to CNBC. Chief Financial Officer Adam Rymer previously described the outlook as “conservative,” citing unpredictable consumer behavior.
The second-quarter update will show whether the chain is outperforming that cautious view. A 1.4% same-store sales gain, if reported, would mark a stronger result than the company’s full-year forecast implies, though the annual outlook would still depend on the remaining quarters.
Investors will also be watching for signs of how consumers are responding to restaurant prices and broader cost pressures. CNBC reported that Chipotle had seen traffic decline earlier as diners focused on value, a trend that has affected many consumer-facing businesses.
Chipotle’s stock performance has made the earnings report more closely watched. With the shares down more than 7% for the year, results that confirm a rebound in same-store sales could help clarify whether Wall Street’s expectations for a short-lived slowdown are holding up.
This story draws on original reporting from CNBC.