Chipotle returns to profitability, but key metrics still down

Chipotle announced its earnings report for the second quarter this afternoon. The results are mixed and indicate Chipotle continues to struggle in its recovery from a series of foodborne illness outbreaks that plagued it last year. While Chipotle has returned to profitability, its revenue came in below analyst expectations and declined again this quarter to $998.4 million—a decrease of 16% year-over-year. Same-store sales, a key metric in Chipotle’s ongoing push to regain consumer trust, also dropped 23.6%. 

Here are some additional key metrics:

During the earnings call, executives emphasized a series of initiatives the company hopes will help its brand perception rebound. For example, Chipotle recently rolled out an expansive marketing campaign, including an animated short film that has since wracked up more than 5 million views on YouTube. Most significantly, the company launched an aggressive rewards program for the summer, called Chiptopia, which seeks to lure back its most loyal customers with offers of free food. According to Chipotle, Chiptopia is showing signs of rapid adoption, with more than 3.6 million people having already participated in the program.  

All the same, a recent report by a Morgan Stanley analyst suggested that 13% of surveyed customers still don’t plan on returning to the restaurant.CGW