Denver, CO, United States (4E) – Chipotle Mexican Grill Inc. reported Monday that its second-quarter profit surged 26 percent on strong sales, offsetting higher costs for food.
The Denver-based Chipotle said profit in the second quarter stood at $110.3mn or $3.50 a share, compared with $87.9mn or $2.82 a share in the second quarter of 2013. The average forecast of 28 analysts surveyed by Thomson Reuters called for per-share earnings of $3.08. Analysts’ estimates typically exclude special items.
The raising of prices did not slow down customer traffic. Same-store sales, which excludes closed stores or newly opened ones, jumped 17.3 percent for the quarter, compared with analysts’ estimates of 10.5 percent gain in same-store sales.
Chipotle said it increased prices in the latest period by an average of around 6.5 percent.
Food costs account for 34.6 percent of revenue, an increase by 150 basis points, driven by higher costs for beef, dairy and avocados, partly offset by the menu price increase and lower prices for tomatillo.
Chipotle plans to open 180 to 195 new stores in the year.