Chipotle Mexican Grill Inc. implemented price hikes across its menu and projected restaurant sales growth, sending shares higher on Tuesday. The shares rose as much as 2.2% to $1,352.80 on Tuesday. The stock has fallen about 3% in 2021.
Speaking at an event hosted by Baird, Chief Executive Officer Brian Niccol said that the company expects a rise in average annual unit sales from $3 million to $3.5 million in the near term. Chipotle raised its prices across the menu by as much as 4% last week.
Investors may be inspired by Chipotle's push for a price increase as they sustained pressure from wages and food costs. The food chain was performing well in the middle of the pandemic.
Chief Executive Officer Brian Niccol said there are "still unknowns" regarding comparable-store sales, which is a closely watched indicator of restaurant success. However, Chipotle expects growth to continue for its off-site sales, which include deliveries and takeout.
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