Consumer
Chipotle Gains as Higher Prices, Cheaper Avocados Boost Results
- New locations helped to bolster sales at burrito chain
- Results reinforce US consumers’ resilience amid inflation
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Chipotle Mexican Grill Inc.’s first-quarter sales and profit surpassed estimates on higher prices and lower avocado costs — the latest proof that companies’ higher prices are sticking as consumers pay up. The shares rose in late trading.
The key measure of same-store sales rose 10.9% in the period, Chipotle said Tuesday. Analysts had projected an 8.5% increase, according to estimates compiled by Bloomberg. The burrito chain sees the measure growing in the mid to high single digits in the second quarter and for the full year, versus the average estimate of 6.1% for 2023.