The popular US-based restaurant chain Chipotle Mexican Grill (NYSE:CMG), released their first quarter financial results on Wednesda, after the market had closed.
Positive developments in the first quarter made the company’s share value rise by more than 20% on Thursday.
Chipotle’s total revenue totalled USD $1.1 billion, which is 7% higher than the revenue of the previous year’s quarter.
Comparable restaurant sales also increased by 2.2%.
According to the company, this rise in revenue was due in part to the opening of several new restaurants. During the first quarter, Chipotle opened 34 new restaurants and only closed two, bringing the company’s total to 2,441.
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A 4.9% increase in menu product pricing, which has been taken into effect within a majority of Chipotle restaurants over the past year, also attributed to higher profit.
CEO, Brian Niccol has said that the company is “in the process of forming a path to greater performance in sales, transactions, margins and new restaurants.”
Predictions for the year of 2018 also sound promising. The company anticipates that 130 to 150 new restaurants will open during the fiscal year.
Comparable restaurant sales should also increase in the single low-digits.
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Niccols believes that although “the company made notable progress during the quarter, [he] firmly [believes] [they] can accelerate that progress in the future.”
The share value of the company has already reached a high of $423.88 which, compared with the closing value of $339.52 on Wednesday, is a significant jump.
This is the highest share value that Chipotle Mexican Grill has seen since June of 2017.
The company has also recently announced the appointing of Marissa Andrada as Chipotle’s new Chief Human Resources Officer. Andrada officially began her new position on Monday.
Featured Image: twitter
