ADVERTISEMENT

October 17, 2013

Gregory Rec/Staff Photographer

In this December 2010 file photo, Kyle Braley stirs a tomatillo green chili salsa at Chipotle Mexican Grill in South Portland. The popular restaurant chain, which serves naturally-raised beef, chicken and pork, has seen its profits skyrocket as more Americans look for slightly higher-quality fast food.

Chipotle’s profits heat up as it draws more diners

The Associated Press

NEW YORK – Chipotle says its profit rose 15 percent in the third quarter as more customers flocked to its restaurants for burritos, tacos and bowls.

The Denver-based company said sales at restaurants open at least a year, a key metric, rose 6.2 percent in the period, driven by higher customer traffic. The sales jump follows a 4.8 percent increase a year ago.

Chipotle, which has more than 1,500 locations, has surged in popularity because customers see it as being a step up from traditional fast-food chains such as Burger King and Wendy’s. People also like that they can customize their orders, dictating which ingredients they want on their orders.

The company’s healthy sales performance is in contrast to the performance of several major food companies including McDonald’s in recent quarters, which have cited the challenging economy for underwhelming sales results.

But some companies seem from insulated from such outside factors. Starbucks, for instance reported a surprisingly strong 9 percent sales increase at locations open at least a year in its most recent quarter.

As for Chipotle, the chain’s “Food With Integrity” ethos has also helped it cultivate a powerful marketing message. It recently generated buzz online with a cartoon video depicting a dystopian world where big food companies fatten chickens with injections and keep cows stuffed in crates. By contrast, the video depicted Chipotle’s food as being homemade from fresh ingredients.

The video got more than 7 million hits on YouTube.

For the quarter, Chipotle Mexican Grill Inc. earned $83.4 million, or $2.66 per share. That’s up from $72.3 million, or $2.27 per share, a year ago. Analysts expected $2.78 per share.

Revenue rose 18 percent to $826.9 million, topping the $820.3 million analysts expected.

For the year, the company said it expects sales at restaurants open at least a year to grow by a mid-single-digit percentage. For 2014, it forecast low-single-digit growth, excluding any menu price increases.

Its stock rose almost 2 percent in after-hours trading.





Further Discussion

Here at PressHerald.com we value our readers and are committed to growing our community by encouraging you to add to the discussion. To ensure conscientious dialogue we have implemented a strict no-bullying policy. To participate, you must follow our Terms of Use.

Questions about the article? Add them below and we’ll try to answer them or do a follow-up post as soon as we can. Technical problems? Email them to us with an exact description of the problem. Make sure to include:
  • Type of computer or mobile device your are using
  • Exact operating system and browser you are viewing the site on (TIP: You can easily determine your operating system here.)


  • Back to Business

News
Sports
Politics
Opinion
Life & Culture
People

© 2014 The Portland Press Herald - All Rights Reserved.
MaineToday Media
One City Center, 5th floor, Portland, ME 04101-5009
(207) 791-6650
contact@pressherald.com