Chipotle’s earnings were encouraging. McDonald’s? Not so much.
That’s the lesson we can take from the earnings reports the two companies released early this week showing two fast-food chains going in different directions.
posted net earnings of $1.39 billion for the second quarter of 2014, down just a hair from $1.4 billion the same quarter in 2013. Chipotle
, meanwhile, saw its earnings skyrocket. Net income was $1.05 billion, up 28% from the year before. Year-to-date growth also favors Chipotle. While McDonald’s had a higher net income for the first six months of the year ($2.59 billion versus $1.95 billion), the burger chain was down 3% while the burrito haven was up 26.6%.
Part of the reason for the numbers is the growing preference of consumers for fast casual restaurants, such as Chipotle or Panera
. This has cut into the business of both fast-food joints and casual dining restaurants such as Olive Garden, or Red Lobster.