Chipotle's Sales, Profit Rise Amid Recovery Efforts
DENVER (AP) — Chipotle says its sales rose during the second quarter as it worked on recovering from past food scares, but noted that recent events show it still has "a lot of opportunity" to improve its operations.
The Denver-based company says sales rose 8 percent at established locations for the three months that ended June 30, following a 24 percent drop in the year-ago period. The improved results in the most recent quarter do not reflect any potential fallout from this month, when Chipotle temporary closed a store in Virginia prompted by what health officials believe was a norovirus outbreak.
At another location in Dallas, the company blamed a structural gap for mice falling from the ceiling. The events came to light after the second quarter ended, and it's not yet known whether they might discourage customers from visiting Chipotle locations in the future.
For the quarter, the company said it earned $66.7 million, or $2.32 per share.
That was more than the $2.16 per share analysts expected, according to Zacks Investment Research.
Total revenue was $1.17 billion. Analysts expected $1.18 billion.
Chipotle shares have dropped roughly 8 percent since the beginning of the year, while the Standard & Poor's 500 index has risen 11 percent. In the final minutes of trading on Tuesday, shares hit $348.40, a decline of 21 percent in the last 12 months. They rose 2.6 percent in extended trading.
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