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Chipotle CFO expects food costs to ‘level off’ in near term

DeFi Daily News by DeFi Daily News
July 25, 2024
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Shares of Chipotle Mexican Grill (CMG) are moving towards the downside despite posting a second quarter earnings beat revealing an 18.2% rise in revenue and an 11.1% rise in same-store sales year-over-year.
Chipotle CFO Jack Hartung joins Morning Brief alongside Yahoo Finance executive editor Brian Sozzi to discuss the fast-casual chain’s earnings, as well as Chipotle’s strategies around pricing, new menu items, and incentives to get customers in and out the door with a full stomach.
“We did see sales step down and that’s consistent with what we’ve seen in kind of industry reports. We also talked about the fact that we’ve got a few things that are going to put some temporary pressure on our margins. A couple of items are inflating from a cost standpoint, that’s dairy and avocados. We think that is going to hit us for the next couple of quarters and then level off,” Hartung explains.
Hartung touches on regional trends in portions and menu prices, ultimately discussing the greatest lessons he’s learned as a top executive as he plans to retire from the Mexican food chain in 2025.
#youtube #news #Chipotle

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