Sales surged at fast-food chain Chipotle Mexican Grill during the first few months of 2012, with net income up nearly 10 per cent from a year earlier to $62 million, or $1.97 per share.Click here for live updates >
Top line results also improved substantially, up 25.8 per cent to $640.6 million and nicely above Wall Street expectations for $631.4 million.
Analysts polled by Bloomberg expected the company to post bottom line results of $1.93.
“We’re delighted that our continuing efforts to serve the very best food made from high quality ingredients raised with respect for the animals, the environment, and the farmers are resonating with our customers, allowing us to deliver double digit comps and record earnings during the quarter,” Chipotle Chief Executive Steve Ells said.
Same-store sales jumped 12.7 per cent at the Mexican chain, while margins increased 220 basis points to 27.4 per cent.
The average Chipotle store generated some $2.1 million in sales during the three month period, up from $1.9 million a year earlier.
The news follows an impressive beat out of Yum Brands yesterday. Yum, the owner of Pizza Hut, Taco Bell, and KFC, reported net income gained 73 per cent during the quarter to $458 million.
Chipotle shares have rebounded slightly in after-hours trading, up 1 per cent.