Chipotle Continues Rapid Ascent Despite Slowing Profits

  Rapid Rise Mexican food chain Chipotle’s first-quarter net income rose 8 percent as higher costs offset a sales surge as more customers bought its burritos and other fare....


 
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Rapid Rise

Mexican food chain Chipotle’s first-quarter net income rose 8 percent as higher costs offset a sales surge as more customers bought its burritos and other fare.

First-quarter sales figures indicate its popularity isn’t fading: a key revenue figure jumped 13.4 percent.

The Denver company says for the three months ended March 31, net income rose to $2.64 per share. That’s up from $2.45 per share, a year ago.

If Chipotle is the Cinderella of the restaurant business, the clock certainly hasn’t struck midnight yet, but it may be getting nearer.

The fast-casual restaurant chain increased revenue again in the first quarter, up 24% to $90.4 million.

Wall Street expected earnings per share of $2.86, while Chipotle only delivered $2.65. Food costs, more than 34% of revenue, grew due to higher commodity costs on beef, avocado, and cheese.

Chipotle Mexican Grill said an increase in customer visits contributed to bigger-than-expected growth in quarterly sales at established restaurants.