Chipotle reported Q2 earnings of $3.50 per share, beating expectations of $3.09 per share.
Revenue of $1.05 billion beat expectations for $989.7 million.
It was a solid quarter overall for Chipotle, with comp store sales up 17.3%, beating expectations for a 10.5% rise.
Higher food costs played into revenue. "Food costs were 34.6% of revenue, an increase of 150 basis points, driven by increased prices for beef, avocados, and dairy, partially offset by the menu price increase and lower tomatillo prices," according to the press release.
"As more of Chipotle's markets are touched with menu price increases this quarter, the company is teed up for at least another two quarter of strong earnings growth that could materially surpass consensus (the amount of unknown as consensus estimates will climb following this report)," Brian Sozzi at CEO at Belus Capital Advisors said in an email.
Revenue for the first six months was up 26.6% year-over-year.
Chipotle expects to open 180-195 new restaurants this year. The stock is surging over 8% after hours to $46.36.
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