Chipotle has had a lot of good news recently. First the burrito chain beat earnings estimates on both the top and bottom line for the first quater, and then it announced that it would be adding desert to its menu.
On Tuesday, burrito chain Chipotle reported EPS of $1.60, way ahead of the $1.27 that analysts had expected. Revenue came in at $1.07 billion, also ahead of the $1.05 billion that analysts were looking for. Soon after the company released its report shares rallied over 5%.
Comparable restaurant sales saw a growth of 17.8% while analysts had expected 15.5% growth. This is the first time since Chipotle had its E. Coli outbreak in 2015 that it saw sales grow.
One of the exciting parts of the earnings call was the announcement of deserts. CEO Steve Ells announced one of the deserts on Tuesday’s investors relations call that would be on the menu at the end of this month. It’s buñuelos, a traditional desert from Mexico that is basically fried tortilla strips that have honey and cinnamon sugar. They are served with caramel apple dipping sauce.
Ells commented, “It’s simple to make and requires us to add just a few additional ingredients. They’re delicious and complement our menu nicely.”
This desert could definitely woo back a lot more customers to the chain.
Disclaimer: We have no position in Chipotle Mexican Grill, Inc. (NYSE: CMG) and have not been compensated for this article.