Chipotle CEO Scott Boatwright said the chain’s affordability scores in the second quarter were better than they have been in the past couple of years, signaling progress on one of its biggest customer complaints about high prices. The company reported second-quarter revenue rose 9.3% to $3.35 billion, with adjusted earnings of $0.33 a share topping Wall Street estimates and comparable restaurant sales up 2.2% driven by gains in traffic and average check. Chipotle has expanded its high-protein menu, introduced lower-priced cups with chicken or beef, and rolled out digital promotions including free double-protein offers, limited-time free delivery, and buy-one-get-one deals. Management raised its full-year outlook to low-single-digit comparable sales growth from a prior expectation of flat growth, and shares rose 8% in early trading Thursday. Citi analyst Jon Tower wrote that the company is on a path to accelerating top- and bottom-line growth, which should support further multiple expansion.
Chipotle Mexican Grill IncAffordability scores hit multi-year high, traffic and average check up, promotions driving demand, and raised full-year comparable sales outlook.