Chipotle Q2 earnings blow past expectations, boosted by brand loyalty and value proposition

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Chipotle,Earnings Per Share,Expectations

Chipotle held onto its momentum in Q2, even as consumers criticized the brand over portions sizes.

On Wednesday after market close, the burrito chain reported earnings that beat Wall Streets' estimates across the board, including on revenue, earnings, and same-store sales.

Same-store sales jumped 11.1% year over year, versus the 9.23% Wall Street anticipated. In Q1, same stores sales were up 7%. SAN RAFAEL, CALIFORNIA - APRIL 01: Workers fill food orders at a Chipotle restaurant on April 01, 2024 in San Rafael, California. Bernstein analyst Danilo Gargiulo, who has an Outperform rating and price target of $80 on the stock, wrote that there areThey include adding late-night or breakfast hours, revamping its loyalty program, and leaning into its Gen Z fans, as the demographic increasingly becomes household decision-makers.. Shares have since fallen nearly 18% in the last month.

A hefty U.S. stocks sell-off sent Wall Street's most watched gauge of market volatility to a three-month high and boosted options trading volume on Wednesday, though strategists saw little evidence of panic. The S&P 500 slipped 2.3%, on pace for its worst daily loss since late 2022, after Tesla and Alphabet reported lackluster earnings, prompting investors to question if the 2024 rally fueled by Big Tech and artificial intelligence is sustainable.

 

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