Higher Menu Prices Help Boost Chipotle Key Sales Figure
NEW YORK (AP) — Chipotle, which recently hired a new CEO from Taco Bell to revitalize its business, saw a key sales figure increase as it raised menu prices in most of its restaurants.
After the results were released Wednesday, shares of the burrito chain soared 10 percent in extended trading.
CEO Brian Niccol, who joined the company last month, is tasked with trying to bring customers back to Chipotle, which has struggled to regain its momentum after a 2015 E. coli outbreak sent sales plunging. Niccol said Wednesday he expects to make tweaks to Chipotle's menu and redesign restaurants in the coming months, but didn't give specifics.
Chipotle Mexican Grill Inc. said sales rose 2.2 percent at existing locations during the first quarter, including a 4.9 percent boost from the higher menu prices.
The Denver-based company also reported first-quarter earnings and revenue that beat Wall Street expectations.
It posted net income of $59.4 million, or $2.13 per share, in the three months ending March 31. That's up from $46.1 million, or $1.60 per share, in the same quarter a year ago.
Revenue rose 7 percent to $1.15 billion in the period.
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