Denver-based Chipotle Mexican Grill Inc., which went public in January, reported Monday that store openings tripled first-quarter profit.
Chipotle shares closed at a record, rising $2.37, or 4.2 percent, to $59.27.
The restaurant chain, founded by chief executive Steve Ells in 1993 with a single store near the University of Denver, has a $1.9 billion market capitalization and 13,000 employees.
The chain is expanding in New York and other markets where burritos made from naturally raised pork and chicken are attracting consumers willing to pay higher prices than at competitors such as Qdoba Mexican Grill.
Chipotle plans to open up to 90 restaurants this year as it expands its share of the $9.7 billion Mexican fast-food market.
“There’s a lot of growth here,” said Nicole Miller, an analyst at Minneapolis-based ThinkEquity Partners LLC, which rates Chipotle as “buy.” “They’re positioned the best, with fresh, high-quality food and a long track record of positive same-store sales.”
Net income rose to $8 million, or 26 cents a share, from $2.63 million, or 10 cents a share, a year earlier.
Revenue climbed 40 percent to $187 million, Chipotle said in a statement.
Chipotle beat analysts’ profit estimate in the fourth quarter, earning $4.26 million, or 16 cents a share, on increased sales of $173.3 million after the company opened 26 restaurants in Chicago, Colorado and northern California.
Analysts expect Chipotle to earn 68 cents a share this year.
Miller estimates that Chipotle generates $10 per order on average, higher than at Jack in the Box Inc.’s Qdoba chain and Moe’s Southwest Grill, because it uses organically grown vegetables and farm-raised meats. Moe’s is owned by Atlanta-based Raving Brands.
Ells, a former chef and a graduate of the Culinary Institute of America, sold Chipotle to McDonald’s Corp. in 1998.
McDonald’s, the world’s largest restaurant chain, owns 65 percent of Chipotle after the company’s initial stock sale. The January public offering of 7.88 million shares raised $173 million.
Oak Brook, Ill.-based McDonald’s said April 26 that it plans to divest its remaining stake in Chipotle by the end of 2006, including the sale of about 5 million shares within the next two months.
The Denver Post contributed to this report.
