Spill numbers for a room full of closed traffic, Chipotle (NYSE: CMG) reports that comparable sales fell 9.8% in the second quarter to exceed the estimated consensus of -11.8%. Comparable sales showed a trend of improvement, with a + 2.0% mark recorded in June.
Digital sales increased 216.3% during the quarter to represent 60.7% of all sales.
The restaurant-level margin fell to 12.2% of sales, driven primarily by higher delivery expense associated with higher delivery sales, deleveraging sales, as well as various temporary investments in the business as a result of COVID-19, including assistance payment and wage inflation. The analysts’ consensus mark was 13.2%.
Balance update: “Chipotle continues to maintain a solid financial position with $ 934.6 million in cash, short-term investments and restricted cash, and no debt, along with an unexploited $ 600 million line of credit with which to continue navigating this crisis The position improved sequentially from $ 909.2 million in cash, short-term investments and restricted cash as of March 31, 2020. Also, assuming that the comparable improvement in restaurant sales that we are seeing continues, that gives us more confidence. on our potential to generate positive cash flow for the remainder of this year, which will help support ongoing strategic investments. That said, our team remains focused on reducing non-core controllable costs and judiciously spending on profitable projects to preserve liquidity. “
As expected, no formal guidance was issued.
Chipotle’s actions are down 1.58% at AH trading at $ 1,163.87.
This was corrected on 07/22/2020 at 07:29 pm comparable sales rate
