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(Reuters) -Chipotle Mexican Grill Inc topped Wall Street expectations for first-quarter sales and revenues on Tuesday, helped by steady demand for its burritos and rice bowls, higher menu prices and 41 new restaurant openings.
The company said it expects second quarter and full year comparable sales growth in the mid-to-high single digits. Analysts were expecting a growth of 5.7% and 5.9%, respectively.
Shares of the company rose more than 5% in extended trading.
Even with inflation squeezing household budgets, restaurant chains are expected to post higher sales growth in the first quarter.
McDonald’s Corp (NYSE:MCD) on Tuesday posted a 12.6% rise in global comparable sales in the first quarter, underscoring American consumers’ appetite for dining out.
Chipotle (NYSE:CMG) has also been able to pass on price increases to its customers – more of whom are from higher-income households earning more than $100,000 – compared to competitors.
Comparable sales at the California-based chain jumped about 11% in the first quarter, while analysts on average expected an 8.6% rise, according to Refinitiv data.
The chain’s weekly year-over-year traffic for the first 13 weeks of 2023 consistently outperformed that of its fast-casual restaurant peers, according to data from Placer.ai.
Special offers including chicken al pastor and a fajita quesadilla helped drive traffic in March.
Chipotle’s restaurants were more profitable, with store-level operating margins rising to 25.6% versus 20.7% a year ago, due in part to lower avocado costs and lower delivery expenses as delivery volumes fell.
