DENVER — Chipotle Mexican Grill proved sales at its red-hot concept aren't cooling off any time soon. The fast-casual Mexican concept reported strong financial results for the second quarter ended July 31, 2006, beating analysts' expectations.
Buckingham Research Group projected Chipotle same-store sales would increase 8 percent, but the 500-unit chain turned in a comps gain of 14.5 percent. "This was an admirable showing, given the slowing consumer in general," Buckingham analyst Mark Kalinowski wrote in an Aug. 1 report.
Revenue increased 31.1 percent to $204.9 million, and net income rose to $10.8 million versus $25.7 million.
"Part of what helped are the company's efforts to increase speed of service; this initiative should remain a driver of same-store sales for the next quarter, at least," Kalinowski said. "The chain's growth potential remains outstanding."
