NEW YORK (AP) – Chipotle says a key sales figure rose more than expected in the first quarter as it works to recover from a series of food scares that had sent customers fleeing.
The Denver-based chain said sales rose 17.8 percent at established locations in the first three months of the year, following a 29.7 percent decline in the year-ago quarter. Sales at stores open at least 13 months had turned positive in December after dropping steeply starting in late 2015. The metric is a considered a key indicator because it strips out the volatility of newly opened and closed locations.
Since the E. coli and other food scares that started sickening people around country more than a year ago, Chipotle has pledged to ensure that its food is safe, offered coupons for free burritos and introduced a temporary loyalty program to get people back in its stores.
For the quarter, Chipotle Mexican Grill Inc. earned $46.1 million, or $1.60 per share, following a loss in the year-ago period. Analysts had expected $1.29 per share, according to FactSet. Total revenue was $1.07 billion, topping the $1.05 billion analysts expected.
Chipotle shares rose more than 5 percent in after-hours trading.