Chipotle Mexican Grill, Inc. (NYSE:CMG) shares advanced sharply Wednesday after the restaurant chain reported stronger-than-expected earnings for its second-quarter.
The company, based in Newport Beach, Calif., said revenue increased 13.2% over the prior-year quarter to $1.4 billion
Comparable restaurant sales increased 10.0%, net of 40 bps from loyalty deferral, and included nearly 7% of comparable restaurant transaction growth
CMG added digital sales grew 99.1% and accounted for 18.2% of sales for the quarter
Diluted earnings per share was $3.22, net of a $0.77 after-tax impact from expenses related to restaurant asset impairment, corporate restructuring, and certain other costs, a 91.7% increase from $1.68.
Adjusted diluted earnings per share excluding these charges were $3.99, a 39.0% increase from $2.87.
During the quarter, CMG opened 20 new restaurants and closed one, bringing the total restaurant count to 2,523.
Net income was $91.0 million, or $3.22 per diluted share, an increase from $46.9 million, or $1.68 per diluted share, in the second quarter of 2018.
Excluding the impact of restaurant closure costs, corporate restructuring, legal reserves, and certain other costs, adjusted net income was $112.9 million and adjusted diluted earnings per share was $3.99.
During the quarter, the Board of Directors approved the investment of up to an additional $100 million, exclusive of commissions, to repurchase shares of its common stock.
"We're pleased with our financial performance, which marks the sixth consecutive quarter of accelerating comps and reflects continued progress on our key strategic initiatives," said CEO Brian Niccol.
Shares jumped $35.58, or 4.8%, to $775.18
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