Chipotle Beats on Both the Top and Bottom Line

Shares of burrito fast food chain Chipotle were sailing higher initially after the company reported earnings and revenue for the first quarter that beat expectations.

The company also revealed that digital sales doubled during the quarter and it increased its outlook for same-store sales.

For the quarter, Chipotle reported earnings per share of $3.40. Analysts had been expecting $3.01. Revenue of $1.31 billion was also better than the $1.27 billion expected. Same store sales saw a growth of 9.9% versus 7.29%. Net income of $88.1 million, or $3.13 per share, was up from $59.4 million, or $2.13 per share in the year ago quarter.

“The on-going improvement in each of our key operating metrics over the past few quarters gives us confidence that our mission to win today and cultivate the future, is resonating,” CEO Brian Niccol stated.

It was this March that the company launched its points-based loyalty program across the nation which Niccol said has grown to 3 million members.

Looking ahead, Chipotle has increased its outlook for same-store sales in 2019. It now expects mid to high single digit sales growth.

“They are on a pathway back, but I think one of the key [reasons] has been the marketing and pushing more the dollars towards the national marketing versus local marketing,” BTIG analyst Peter Saleh remarked on CNBC’s “Closing Bell. ”

Shares of Chipotle have seen gains of 63% so far this year.

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