Chipotle Mexican Grill, Inc. (NYSE: CMG) posted its second quarter earnings after the market closed on Tuesday, beating the estimates of Wall St. analysts amid several food safety scandals and sending shares up 2 percent in after-hours trading.
The Denver based company reported $66.7 million in earnings, or EPS of $2.32, which surpassed the Zacks Consensus Estimate of $2.16 by 7.4 percent. CMG’s 2017 Q2 earnings are up compared to last year’s numbers of $25.6 million in earnings, or 87 cents per share.
Total revenue rose 17.1% from the year-ago quarter to $1.17 billion driven by new restaurant openings and solid comps growth. However, revenues missed the consensus mark of $1.18 billion by over 1%. The company saw an 8.1 percent increase in sales at restaurants open at least 13 months, less than the 9.5 percent gain expected by analysts, according to Reuters.
Chipotle shares stood at $750 in 2015 until the company was linked to outbreaks of E. coli. Since then, the company has been struggling to repair its brand and reputation. The recent health scares in Dallas and Virginia caused the stock to drop 12 percent in two weeks. CMG shares currently stand at $343.08. According to Zacks, continued focus on food safety, simplification of restaurant operations, menu innovation, enhancing digital orders and increased brand marketing should drive growth, going forward. Many analysts, however, are still doubtful that CMG will bounce back.