Investing.com -- Chipotle Mexican Grill (NYSE:CMG) reported Wednesday better-than-expected first quarter results, as a hike in menu price items boosted margins.
Chipotle (NYSE:CMG) rose in after-hours trading following the report.
For the three months ended Mar. 31, the burrito chain reported earnings of $13.37 per share on revenue of $2.7 billion, above estimates of $11.65 per share and revenue of $2.67B.
The beat on the top line was supported by new restaurant openings and comparable restaurant sales growth of 7%, which beat Wall Street estimates of about 5%.
Restaurant level operating margin in the first quarter was 27.5%, up from 25.6% in the first quarter of 2023. The company opened 47 new restaurants during the first quarter.
In a note to clients, analysts at Jefferies said that the amount of customers choosing to dine in one of Chipotle's locations showed "relative [,,,] outperformance," adding that digital orders were supported by strong demand for sides and add-on items.
Looking ahead to 2024, the company forecasts full-year comparable restaurant sales growth in the mid to high-single digit range and 285 to 315 new restaurant openings.
"Menu innovation and marketing prowess are essential, but efforts to increase in-store throughput might be this year's most critical transaction-building initiative," analysts at Stifel said in a note.
Yasin Ebrahim contributed to this report.