Chipotle Mexican Grill (CMG, Outperform) continues to beat our revenue and EPS estimates by $61.87 million and 41 cents respectively, posting a phenomenal 28.6% year over year revenue growth (with 17.3% comp growth) during a tepid quarter for restaurant operators, helping to preserve margins in the process. With the aid of its price hikes, company’s same-store sales increased by 17.3% year over year in second quarter, a remarkable growth from first quarter’s 13.4 percent cut.
Company’s total revenue came in $1.05 billion. Nearly 12 percent of the comp growth was as a result of transaction increase exceeding broader restaurant segments averages, denoting market share growth and underpin the potency of company’s brand intangible asset. We observed that the transaction growth was concurrent with a 5% growth in the average transaction size due to menu price increase, 1.6% lift in catering and add-on orders.