Chipotle shares sizzled in early trading Wednesday, jumping more than 10% to a record high.
Several brokerages raised their price targets after the upscale burrito chain’s surging quarterly profit and same-store sales breezed past analysts’ estimates. The company also hiked its sales forecast.
Sales had already recovered during the health crisis, but they grew even stronger over the last three months as Americans trickled back to offices and ordered more lunch. Comparable sales rose more than 30%.
But the company warned that higher costs will offset the benefit of menu price hikes in the near term. So far, it said, it has seen “no resistance” to higher menu prices.
The chain has been expanding, opening 56 new locations during the quarter. 45 of them have drive-thru “Chipotlanes” that allow customer to pick up their orders.
The company’s shares have risen nearly 25% so far this year.