Why Chipotle Stock Is Surging After Hours

Why Chipotle Stock Is Surging After Hours

Chipotle Mexican Grill Inc CMG shares are trading higher in Tuesday's after-hours session after the company reported better-than-expected earnings results.

Chipotle said second-quarter revenue increased 17% year-over-year to $2.21 billion, which missed the estimate of $2.24 billion, according to data from Benzinga Pro. The fast-casual restaurant chain company reported quarterly earnings of $9.30 per share, which beat the estimate of $9.05 per share.

Comparable restaurant sales jumped 10.1% in the second quarter. In-restaurant sales increased 35.9%, while digital sales represented 39% of food and beverage revenue. 

Chipotle said it opened 42 new restaurants in the quarter, with 32 locations featuring a "Chipotlane."

"Our pricing power and value proposition remain strong as our culinary and food with integrity commitment continues to be a key point of differentiation," said Brian Niccol, chairman, and CEO of Chipotle.

Chipotle said it expects third-quarter comparable restaurant sales growth to be in the mid to high-single digits. The company anticipates opening between 235 and 250 new locations in 2022. 

CMG Price Action: Chipotle has a 52-week high of $1,749.07 and a 52-week low of $1,196.28.

The stock was up 8.55% in after-hours at $1,429 at press time.

Photo: courtesy of Chipotle.

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