Despite raising prices for its burritos earlier in the year, fast-food chain Chipotle reported strong second quarter sales and higher profits on Monday.
Chipotle’s (CMG) reported quarterly profits of $110.3 million, a 25.5% gain from the same period a year earlier. Revenues increase 29% to $1.05 billion as the company added 45 new restaurants.
On a per share basis, Chipotle earned $3.50 a share. That beat analyst expectations of $3.09 per share on $989.7 million in sales.
For the first six months of the year, the company reported a 26% gain in revenue to $1.95 billion after opening up 89 new restaurants for a total of 1,681.
Food costs grew to 34.6% of total revenue, which the company said was offset by increasing prices for customers and lower wholesale prices for tomatillos.
Shares of the fast food Mexican food chain gained surged over 9% in extended trading on Monday after the earnings report to just over $645. Ahead of the announcement in regular trading, its shares closed at $589.93.
During the rest of the year, Chipotle expects to open another 180 to 191 restaurants.
“We’re pleased that we continued to drive excellent results in the second quarter, including one of our strongest sales comps as a public company,” Steve Ells, Chipotle’s co-CEO, said in a statement.
