Profits Sizzle at Chipotle

Chipotle Mexican Grill (CMG) posted higher-than-expected second-quarter earnings, firing up shares late Tuesday.

The burrito and taco chain posted net income of $20 million, or 60 cents a share, up from $10.8 million, or 33 cents a share, a year earlier. Analysts polled by Thomson Financial predicted earnings of 45 cents share.

Revenue climbed to $274.3 million from $204.9 million the prior year. Same-store sales, representing sales at restaurants open at least a year, increased 11.6%.

Analysts predicted revenue of $262.9 million.

Restaurant-level operating margins improved to 23.2% from 21.7% last year, which Chipotle said was primarily due to efficiencies in labor, menu price increases in certain markets, and improved restaurant-level controls. These improvements were partially offset by higher food costs.

"Our sales growth and operational efficiencies continued to drive our increased restaurant level margins and overall profitability in the second quarter and year-to-date," said Jack Hartung, chief finance and development officer. "As a result of our strong sales momentum through June, we are increasing our expectation for full year comparable restaurant sales to the high single to low double digit range."

Previously, Chipotle projected a same-store sales increase in the mid- to high-single digits for the year.

Shares were up $5.93, or 6.7%, to $94.27 in after-hours trading.

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