Chipotle Mexican Grill, Inc. (CMG) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

July 26, 2022 4:30 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day and welcome to the Chipotle Mexican Grill Second Quarter Fiscal 2022 Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded.

I would now like to turn the conference over to Cindy Olsen with Investor Relations. Please go ahead.

Cindy Olsen - IR

Hello, everyone, and welcome to our second quarter fiscal 2022 earnings call. By now, you should have access to our earnings press release. If not, it may be found on our Investor Relations website at ir.chipotle.com.

I will begin by reminding you that certain statements and projections made in this presentation about our future business and financial results constitute forward-looking statements. These statements are based on management's current business and market expectations, and our outlook projections in the forward-looking statements.

Please see the risk factors contained in our annual report on Form 10-K and in our Form 10-Qs for a discussion of risks that may cause our actual results to vary from these forward-looking statements.

On our discussion today, we will include non-GAAP financial measures. A reconciliation to GAAP measures can be found via the link included on the presentation page within the Investor Relations section of our website.

We will start today's call with prepared remarks from Brian Niccol, Chairman and Chief Executive Officer; and Jack Hartung, Chief Financial Officer. After which, we will take your questions. Our entire executive leadership team is available during the Q&A session.

And with that, I will turn the call over to Brian.

Brian Niccol - Chairman & CEO

Thanks Cindy and good afternoon everyone. We are pleased with our second quarter performance during a period of inflation and consumer uncertainty. For the quarter, sales grew 17% to reach $2.2 billion driven by a 10.1% comp; in-store sales grew by 36% over last year; digital sales represented 39% of total sales; restaurant-level margin was 25.2%, an increase of 70 basis points year-over-year; adjusted diluted EPS was $9.30, representing 25% growth over last year; and we opened 42 new restaurants, including 32 Chipotlanes.

I would like to spend a couple of minutes providing insight into current trends and our outlook. Regarding Q2, through mid-May, comparable sales were on track to reach the top end of our guidance range. Since then, the underlying trend has decelerated and we anticipate mid- to high single-digit comps for Q3 with planned pricing in August.