Chipotle sees stronger quarterly sales on higher prices, demand

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Shares of the California-based company jumped 6% in extended trading as it also said restaurant margins improved to 25.2% in the second quarter from 24.5% a year earlier.

It expects same-store sales to rise in the mid- to high-single digits in the third quarter, while analysts on average predict a 7.1% gain, according to Refinitiv IBES.

In a bid to boost sales, Chipotle has been launching new menu items such as the limited-time Mexican chicken dish pollo asado. The company is also doubling down on its digital business through its order-ahead drive-thru “Chipotlanes”.

The company has been bumping up prices for its menu items to offset higher costs of everything from paper to avocados.