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Earnings Results: Chipotle continues growth but says it’s seeing fewer lower-income customers as prices rise

Chipotle Mexican Grill Inc. on Tuesday reported continued growth, with third-quarter profit beating analysts’ expectations.

Chipotle
CMG,
+2.47%

shares rose almost 4% in extended trading, after rising 2.7% in the regular session to close at $1,588.19. 

The company reported that comparable-restaurant sales increased 7.6%, beating analysts’ expectation of 7.3%, and that it opened 43 new restaurants in the quarter.

“Our performance in the third quarter confirms our brand and value proposition remains strong, even during a challenging economic environment,” Chief Executive Brian Niccol said in a statement.

The fast-food restaurant chain reported third-quarter net income of $257.1 million, or $9.20 a share, which beat the $9.19 a share analysts surveyed by FactSet had expected. That compared with $204.4 million, or $7.18 a share, in the year-ago period. Adjusted for employee-separation expenses, duplicate rent, stock-based compensation and other costs, earnings were $9.51 a share. Revenue rose to $2.22 billion from $1.95 billion in the year-ago quarter, falling shy of the $2.23 billion analysts expected.

The company expects fourth-quarter comparable-restaurant sales growth in the mid- to high-single digits.

Shares of Chipotle have fallen about 9% year to date, compared with a 19% loss for the S&P 500
SPX,
+1.63%

index.

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