Chipotle Mexican Grill Inc. reported sales that exceeded analysts’ expectations for its latest quarter -- a sign of consumer resilience in the face of recent menu price hikes.

• The closely watched metric of comparable sales rose 31.2 per cent in the second quarter, outpacing analysts’ projection for a jump of nearly 30 per cent. The company also posted restaurant margin, which is an important measure of profitability, that outpaced expectations.

Key insights

• Chief Executive Officer Brian Niccol said the results demonstrate “growing momentum” as the company seeks to boost sales and adds drive-thrus. While Chipotle didn’t give a full-year sales forecast, it said the business is trending up in the current quarter. Comparable sales should climb in the low to mid-double digits in the third quarter, and the company expects to open about 200 new locations this year.
• The restaurant-level operating margin was 24.5 per cent, roughly double the level from a year ago. The company attributed the performance in part to higher menu prices, fewer promotions and lower beef prices. Those were offset partially by wage inflation.
• The company said that food, beverage and packaging costs fell as a percentage of revenue from a year earlier. They attributed this to price increases, which were partially offset by higher costs associated with new menu items, like quesadillas.

Market reaction

• The shares rose 4.7 per cent in late trading in New York Tuesday. The stock has advanced 14 per cent this year through Tuesday’s close.