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Chipotle (CMG) stock rose 6% after hours on a strong second quarter as the burrito chain's growth strategy took off, offsetting macroeconomic uncertainty and concerns about a cyclosporiasis outbreak.
Same-store sales grew 2.2%, higher than the 1.33% Wall Street forecast per Bloomberg consensus data in Q2, lapping a 4% decline in the same period last year as the fast-casual chain invested in menu innovation like Honey Chicken and Cilantro Lime Sauce, marketing, its loyalty program, and group orders.
More from Yahoo Scout What are Chipotle's outlook and expansion plans? What is Chipotle's Recipe for Growth strategy? What drove Chipotle's strong second quarter performance? How did the cyclospora outbreak affect Chipotle?
"Our positive results reflect the momentum we're building as our Recipe for Growth strategy continues to take shape," CEO Scott Boatwright said in the release. "We're seeing encouraging progress because we're focused on the right growth drivers."
Higher same-store sales growth was driven by a 1.2% increase in average check and a 1.0% increase in transactions.
Seemingly, it was enough to propel past macroeconomic trends, as high gas prices and inflation remain pain points for consumers, especially lower-income households, that Dana Telsey of Telsey Advisory Group said could "partially offset" the momentum.
Revenue grew 9.3% to $3.35 billion, just above the $3.33 billion expected. Boatwright told investors that catering and build-your-own Chipotle orders, which feed 4-6 people, now account for 2% to 3% of sales. Chipotle plans to roll these initiatives out nationally in 2027.
Adjusted earnings per share came in at $0.33, higher than the $0.32 predicted.
The company said during the quarter that it raised prices by 1.6%, and it expects prices to increase by a mid-2% percentage in the third quarter due to inflation, primarily in beef and freight costs, which offset lower avocado and dairy prices.
'Not involved' in cyclospora outbreak
Momentum may have stalled in late July due to the cyclospora parasite outbreak. Per Placer.ai, foot traffic for the chain was down 1.4% as of July 23.
"Our review of Placer.ai traffic data indicates healthy positive traffic growth across all three months of 2Q26," Telsey wrote. "Note, however, traffic in early July remained strong, but it slowed in mid-July, as the cyclospora outbreak related to lettuce gained attention."
Boatwright made it clear that Chipotle is not affected by the outbreak and wants to "put that to rest."
"We're not impacted, or we are impacted from a sales perspective, but we're not involved in the conversation today," he said. "The products that are caught up in that conversation we don't use in our menu, and our lettuces are sourced here in California."
