Chipotle brings the heat.The company isn’t just hot right now; It’s burning hot. The Mexican restaurant chain’s shares rose more than 9 percent in after-hours trading last week, up $54.57 to $644.85. This may be in part to the company’s second quarter same-store sales, which jumped 17.3 percent for the second quarter of 2014.
Unlike other fast-food chains, which could only post extraordinary quarterly results like Chipotle’s with a new product roll-out or promotional tie-in, the company only new product was Tofu Sofritas, organic tofu pegged toward vegetarians. Not to mention, the company announced an increase in menu prices for the first time in three years.
Steve Ells, founder of Chipotle, said the company has seen more traffic in during this period. Consumers, specifically Millennials, choose the company for its healthier food offerings and reasonably modest prices. The chain has also increased its catering business. “These extraordinary results are made possible by our special food culture, innovative people culture and strong business model,” Ells said.