Chipotle beats quarterly sales estimates on steady demand

(Reuters) -Chipotle Mexican Grill Inc topped Wall Street expectations for quarterly sales on Tuesday, as higher menu prices did not dissuade the restaurant’s affluent customers from digging into its burritos and rice bowls.

While concerns around demand at U.S. restaurants have been mounting due to decades-high inflation, analysts have noted that sales bounced back in the third quarter after a slowdown in June, as gas prices eased from peaks and grocery costs climbed at a faster pace.

Chipotle (NYSE:) also introduced garlic guajillo steak at a limited time offer in the quarter, in a bid to retain its customers amid a choppy consumer spending environment.

Comparable sales at the California-based chain jumped 7.6% in the third quarter ended Sept. 30, while analysts on average had expected a 7.3% rise, according to Refinitiv IBES.

Shares of the company rose 1% in extended trading.

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