.July 25, 2024 08:46:00 AM

Chipotle Mexican Grill (NYSE:CMG) shares surged over 2% in pre-market trading after a strong second-quarter performance. The company reported an adjusted EPS of $0.34, beating the Street forecast of $0.32, with revenue reaching $3 billion compared to the projected $2.94 billion. Year-over-year, revenue rose by 18.2%, driven by an 11.1% increase in comparable restaurant sales and a 32.0% jump in adjusted diluted earnings per share. Digital sales accounted for 35.3% of total food and beverage revenue, contributing to the growth in comparable sales.

Operating margins improved to 19.7%, up from 17.2% the previous year, with restaurant-level operating margins climbing to 28.9%. Despite challenges from wage and ingredient inflation, the company saw a 140-basis point improvement in margins, reflecting the positive impact of sales leverage. Looking ahead to 2024, Chipotle anticipates mid to high-single digit comparable restaurant sales growth and plans to open 285 to 315 new restaurants, with over 80% featuring a Chipotlane.