Chipotle Stock Surges as Earnings, Revenue Top Estimates

Chipotle Mexican Grill (CMG) shares jumped successful extended trading Wednesday aft nan institution posted better-than-expected results for nan 2nd quarter.

The institution reported second-quarter gross of $2.97 billion, up 18.2% year-over-year and topping analysts' estimates compiled by Visible Alpha. Net income was $455.67 cardinal aliases 33 cents per share, besides showing maturation from nan aforesaid play a twelvemonth anterior and supra expectations.

Bucking nan 'Value Meal' Trend

Chipotle, alongside "fast casual" peers for illustration Sweetgreen (SG), has not joined nan "value meal" trend for illustration galore accelerated nutrient restaurants. Analysts have suggested that Chipotle hasn't felt nan aforesaid unit arsenic others for illustration McDonald's (MCD) to little prices, allowing nan institution to prolong gross maturation amid a difficult consumer spending environment.

"The 2nd 4th was outstanding arsenic successful marque marketing, including nan return of Chicken Al Pastor, drove beardown request to our restaurants," Chipotle CEO Brian Niccol said, adding that nan restaurant's "focus and training astir throughput paid disconnected arsenic we were capable to meet nan stronger request trends."

The results marked Chipotle's first net study since its stock divided past month.

The burrito chain's shares were up much than 5% astatine $54.76 successful extended trading Wednesday pursuing nan release.