Chipotle Second Quarter Sales And Shares Increase

Chipotle Second Quarter Sales And Shares Increase

Same-store sales of Chipotle increased in the second quarter this year compared to the same period last year. An increase of 17.3 percent was recorded in stores that were open for at least a year.

Shares of the restaurant chain also went up to $633.85 or by $54.57 due to the increase in same-store sales. This is equivalent to an increase of over 9 percent in after-hours trading. Chipotle founder Steve Ells said the innovative people and food culture along with the solid business model of the company allowed it to achieve these exceptional results.

Net income and revenue also increased by 25.5 percent and 28.6 percent respectively. The net income of the company reached $110.3 million while revenues went up to $1.05 billion in the quarter. Forty-five new stores were opened by the company during that period.

The increase in sales of the restaurant chain is unlike the increase in many fast-food restaurants where exceptional results follow the introduction of new products. The most innovative product introduced by the company was the Tofu Sofritas, which is an organic tofu aimed at vegetarians.

The notable sales came despite an announcement of an increase in menu prices. Aside from the increase in store sales figures basing on the average check, an increase in in-store traffic was also noted by the company. The healthy food offerings of the company appealed to customers, particularly with the modest prices of the food items. In addition to its stores, the company is also promoting its catering business.

The exceptional results of the company have started to extend to other restaurant concepts. The ShopHouse Southeast Asian Kitchen outlets also experienced exceptional sales. The restaurant chain aims to make a mark in the market for design-it-yourself pizzas with Pizzeria Locale despite being limited to two locations, Denver and Boulder, Colorado.

Chipotle started its first store in Denver and it currently has 1,681 stores around the country.

Posted by James Fried on Thursday July 24 2014, 3:59 AM EST. Ref: USA Today. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0