Chipotle's Q2 Earnings Report Bodes Well for the Future
The COVID-19 pandemic has crushed restaurant traffic this year. While restaurants focused on sit-down dining have been hit the hardest, fast-casual chain Chipotle Mexican Grill (NYSE: CMG) didn't escape unscathed, either.
Nevertheless, while Chipotle's revenue declined and its profit margin collapsed last quarter, business trends have improved rapidly over the past several months. This quick rebound during a period when many consumers haven't returned to their normal routines yet suggests that Chipotle is primed for explosive growth once the pandemic ends.
On its face, Chipotle's second-quarter performance was unimpressive. Revenue fell 4.8% to $1.36 billion on a 9.8% comp sales decline. While digital sales more than tripled to $829.3 million, making up 60.8% of the sales mix, that still wasn't enough to offset the drop in sales inside Chipotle restaurants.
Source Fool.com
