Chipotle sees revenues hit $2.5bn

Chipotle has revealed that its total revenue in Q2 2023 was $2.5bn (£1.93bn), an increase of 13.6% compared with Q2 2022, according to its recent trading update for the three months ended 30 June 2023.

It said that the increase in total revenue was driven by a 7.4% increase in comparable restaurant sales and new restaurant openings.

It also saw that its in-restaurant sales in the second quarter increased 15.8%, while digital sales represented 38.0% of total food and beverage revenue.

Its operating margin rose to 17.2%, an increase from 15.3% and its restaurant level operating margin in the second quarter was also up 27.5% compared with 25.2% in the second quarter of 2022.

According to Chipotle, the improvement was primarily due to “the benefit of sales leverage and, to a lesser extent, lower avocado prices”.

Net income for the second quarter was $341.8m (£263.56m), or $12.32 (£9.5) per diluted share, compared with $259.9m (£200.4m), or $9.25 (£7.13) per diluted share, in the second quarter of 2022.

For 2023, management is anticipating that its third quarter comparable restaurant sales growth to be in the low to mid-single digit range and its full year comparable restaurant sales growth to be in the mid to high-single digit range.

It also plans on opening 255 to 285 new restaurant openings (including 10 to 15 relocations to add a Chipotlane).

Brian Niccol, chairman and CEO, Chipotle, said: “Chipotle’s second quarter results demonstrate our ability to drive strong performance by focusing on exceptional food and exceptional people.

“Additionally, our investment in our employees, technology, and innovation in our restaurants along with expanding access and convenience in North America and laying the groundwork for international growth, set us up for long term success.”