Chipotle Mexican Grill (CMG) Q2 2021 earnings
A person wearing a protective mask and gloves leaves a Chipotle restaurant in San Francisco, California on April 19, 2021.
David Paul Morris | Bloomberg | Getty Images
Chipotle Mexican Grill will announce its second quarter results on Tuesday after the bell.
Wall Street analysts surveyed by Refinitiv expect the following:
- Earnings per share: $ 6.52 expected
- Revenue: $ 1.88 billion expected
A year ago, the burrito chain’s net sales fell 4.8% as lockdowns weighed on demand. Analysts expect revenue to grow by almost 38% this quarter. During the pandemic, digital orders soared and helped the company recover quickly. In the first quarter of this year, online orders exceeded personal sales for the first time.
However, investors will be careful to see if executives address any of the looming threats to the recovery. Food prices are rising, which could put pressure on Chipotle’s profit margins. The company has already raised prices earlier this year to pass on the cost of wages for migrant workers. The Delta variant is causing a surge in new Covid-19 cases in the United States, leading Los Angeles County to require masks indoors regardless of vaccination status.
Last quarter, Chipotle declined to issue a sales outlook for the remainder of the year, citing the uncertainty caused by the pandemic. Unless the company experiences significant construction delays, it plans to open about 200 new restaurants in 2021.
Chipotle’s shares are up 13% this year, giving the company a market value of $ 44 billion.