Chipotle Mexican Grill (NYSE:CMG) swung significantly higher after hours upon reporting a 40% jump in third-quarter profit on improved volumes and new restaurants.
The Denver company posted net income of $48.2 million, or $1.52 a share, compared with $34.45 million, or $1.08 a share, in the same quarter last year, widely trumping the Street’s view of $1.30.
Revenue for the restaurant chain was $476.8 million, up 23% from $387.58 million a year ago, and beating the Street’s view of $461.18 million.
Earnings were boosted by 11.4% growth in comparable sales, or restaurants that have been open for at least 13 months, on increased volume, further assisted by the opening of 22 new Chipotle’s.
Chipotle Co-CEO Steve Ells said the company was “delighted” with the double digit growth, attributing the gains to the company’s focus on food and people culture, and strengthening business model.
“Our business model is resulting in even stronger customer loyalty and allowing us to deliver industry leading financial results,” he said.
Looking ahead, the company expects to open another 120 to 130 new restaurants before the end of the year and post high single-digit comparable sales growth.