Chipotle is raising its full-year sales forecast after beating second-quarter expectations

The updated forecast calls for comparable restaurant sales to grow by a low single digit percentage over the full year, a step up from the flat same-store sales growth the company had previously anticipated, Chipotle said. Chipotle stock climbed about 6% in extended trading.

Second-quarter revenue rose 9.3% to $3.35 billion. Analysts had expected $3.33 billion, according to CNBC. On an adjusted basis, the company earned 33 cents per diluted share, edging past the 32-cent consensus estimate.

This quarter, Chipotle’s net income was $403.5 million, or 32 cents per diluted share, down from $436.1 million and the same per-share amount a year ago. Comparable restaurant sales rose 2.2%, with customer visits up 1% and higher check sizes adding 1.2%.

"Our positive results reflect the momentum we're building as our Recipe for Growth strategy continues to take shape," CEO Scott Boatwright said in a statement. "These efforts are building a stronger business and reinforcing our confidence in Chipotle's ability to deliver sustainable long-term growth and shareholder value."

On a call with analysts, Boatwright attributed the quarter's performance to the company's seasonal Chipotle Honey Chicken offering, a recently introduced cilantro lime sauce, and its rewards program. He said menu innovation had an outsized impact on winning over younger and lower-income consumers.

Even with a strong quarter, the company pointed out a challenge from a U.S. cyclospora outbreak tied to fresh lettuce at some restaurant chains. Executives explained that Chipotle’s lettuce comes from California and is not affected, but public concern about the outbreak lowered late-July sales by about 2 percentage points. The company included this impact in its new guidance.

The operating margin for the quarter was 15.7%, down from 18.2% a year ago. Food, beverage, and packaging costs increased to 29.7% of revenue from 28.9%, mainly because of higher beef and freight prices. Labor costs also rose to 25.0% of revenue from 24.7%, due to wage increases and bonuses.

The quarter saw Chipotle debut 100 new company-owned restaurants — 80 featuring its Chipotlane drive-through format — along with a single international location run by a franchise partner. The company has more than 4,200 total restaurants and plans to open 350 to 370 new locations in 2026.