Chipotle Shares Explode After Earnings Beat

Chipotle Mexica Grill saw its shares head higher in Thursday trading for a record rally after the company posted earnings on Wednesday that beat analysts’ expectations.

Chipotle, who has been struggling for the last two years and in the midst of a turn around effort with a new CEO, posted revenue of $1.15 billion. Profit was $2.13 a share, way ahead of the $1.57 that analysts had been expecting.

The earnings report marked the very first for new CEO Brian Niccol, who was previously the chief executive at Taco Bell.

“Chipotle is a purpose-driven brand with loyal customers, passionate employees, industry-leading economic potential, along with incredible brand equity, and craveable food with integrity, all built over the last 25 years,” Niccol stated. “While the company made notable progress during the quarter, I firmly believe we can accelerate that progress in the future.”The stock was on track to rally the most since the company went public in January 2006.

Chipotle also reported that it had opened 35 new restaurants and experienced a 2.2% increase in comparable restaurant sales.

Disclaimer: We have no position in Chipotle Mexican Grill, Inc. (NYSE: CMG) and have not been compensated for this article.