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Chipotle Mexican Grill shares hit a record high on Wednesday after the company reported stronger-than-expected first-quarter results.
The fast-casual Mexican chain opened 41 new restaurants during the quarter and raised menu prices amid nagging inflationary pressures.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CMG | CHIPOTLE MEXICAN GRILL INC. | 58.81 | +0.18 | +0.31% |
Chipotle Chief Financial Officer Jack Hartung said in an earnings call Tuesday that "We're still running the menu price increase compared to last year at about a 10% range."
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It is a benefit to the quarter when transactions are flowing and menu prices are flowing as well, he added.
Helped by the price increases and new locations, Chipotle reported a net income of $291.6 million, or $10.50 per diluted share to beat analysts’ expectations of $248.4 million, or $8.92 per share over the first quarter.
Chipotle’s new restaurant design is all electric, aims to maximize energy efficiency, and utilizes 100% renewable energy to reduce greenhouse gas emissions from energy use at the restaurants where it’s implemented. (Chipotle )
Meanwhile, profits per share were 84% higher than last year on an adjusted basis.
Comparable sales at California-based Chipotle climbed roughly 11%. Analysts predicted an 8.6% rise, according to Refinitiv data.
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Store-level operating margins were also an on upward trend, rising 25.6% from 20.7% a year ago, due in part to lower avocado costs and delivery expenses as delivery volumes fell.
In the Tuesday earnings call, Chipotle CEO Brian Niccol said lower-income customers were also eating at Chipotle more often after a pullback, though their visits are not back to where they were a year ago.
HOUSTON, TEXAS - Customers view a menu at the Chipotle Mexican Grill in Houston, Texas. (Photo by Brandon Bell/Getty Images) (Photo by Brandon Bell/Getty Images / Getty Images)
"We've seen nice improvements across all of our income cohorts," he said. "People with household incomes of at least $100,000 make up more of Chipotle's customer base than at some other fast-food and fast-casual brands."
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The company said it expects second-quarter and full-year comparable sales growth in the mid-to-high single digits. Analysts were expecting a growth of 5.7% and 5.9%, respectively.
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Reuters contributed to this report.