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Jun 30, 2022

Chipotle Q2 2022 Earnings Report

Chipotle's Q2 2022 performance was marked by a revenue increase of 17.0% to $2.2 billion, driven by a 10.1% rise in comparable restaurant sales and new restaurant openings.

Key Takeaways

Chipotle Mexican Grill, Inc. reported strong financial results for the second quarter ended June 30, 2022, with total revenue increasing by 17.0% to $2.2 billion and comparable restaurant sales growing by 10.1%. The company opened 42 new restaurants, including 32 Chipotlanes, and diluted earnings per share increased by 40.2% to $9.25.

Total revenue increased 17.0% to $2.2 billion.

Comparable restaurant sales increased 10.1%.

In-restaurant sales increased 35.9%, while digital sales represented 39.0% of food and beverage revenue.

Diluted earnings per share was $9.25, a 40.2% increase from $6.60.

Total Revenue
$2.21B
Previous year: $1.89B
+16.9%
EPS
$0.19
Previous year: $0.15
+26.7%
Comparable Sales Increase
10.1%
Previous year: 31.2%
-67.6%
Total Restaurant Count
3.05K
Previous year: 2.85K
+7.0%
Net Restaurant Openings
42
Previous year: 51
-17.6%
Gross Profit
$558M
Previous year: $463M
+20.6%
Cash and Equivalents
$521M
Previous year: $668M
-22.0%
Free Cash Flow
$186M
Previous year: $131M
+41.9%
Total Assets
$6.55B
Previous year: $6.32B
+3.6%

Chipotle

Chipotle

Forward Guidance

For 2022, management is anticipating the following: Third quarter comparable restaurant sales growth, including planned price increases in August, in the mid to high-single digits and Between 235 to 250 new restaurant openings (including 10 to 15 relocations to add a Chipotlane), which assumes construction, permit and material supply delays don’t worsen and An estimated underlying effective full year tax rate between 25% and 27% before discrete items

Positive Outlook

  • Third quarter comparable restaurant sales growth in the mid to high-single digits.
  • Planned price increases in August.
  • Between 235 to 250 new restaurant openings.
  • Adding 10 to 15 Chipotlanes through relocations.
  • Stable construction, permit, and material supply conditions.

Challenges Ahead

  • Construction delays.
  • Permit delays.
  • Material supply delays.
  • Uncertainty regarding comparable restaurant sales growth.
  • Potential impact of price increases on sales.