(Reuters) -Chipotle Mexican Grill topped market estimates for quarterly sales on Tuesday, as Americans ordered more of its burritos and rice bowls despite menu items getting pricier, underscoring its resilience in a choppy macro environment.
Shares of the California-based company were up about 2% in extended trading.
While the U.S.
restaurant industry has seen customer traffic weaken in the past few months, Chipotle has been bucking the trend thanks in part to its higher-income customer base that was relatively less impacted by persistent inflation.
Data from Placer.ai showed traffic at Chipotle’s U.S.
locations climbed 2.6% in October and strengthened further to end the quarter with a 5.5% jump in December alone, while the overall fast-food industry saw visits drop 1.6% on average.
Comparable sales at the restaurant chain rose 8.4% in the fourth quarter, compared with analysts’ average estimate of a 6.96% increase, according to LSEG data.
The company said it expects comparable restaurant sales growth in the mid-single digit range for 2024, compared with analysts’ average estimate for a 5.34% increase.
(Reporting by Deborah Sophia in Bengaluru; Editing by Shilpi Majumdar)
