Chipotle Mexican Grill shares rose Tuesday as the company reported better-than-expected earnings, as more customers headed to its restaurants and spent more while they were there.
"This is an indication that Chipotle should be through the worst of the fallout from its food safety issues and can now refocus on expansion," Simon Negri, partner in the Consumer Products & Retail Practice at A.T.
"2017 is off to a strong start, as our restaurant managers and teams are energized by our renewed focus on the customer," Steve Ells, CEO of Chipotle, said in a statement Tuesday.
"By simplifying the focus in our restaurants to only those elements that lead to a great guest experience, our operations have improved every single month, which gives us confidence that we are on our way to achieve our mission to ensure that great food made with whole unprocessed ingredients is accessible to everyone." However, these gains were overshadowed by the company telling investors that it had detected "unauthorized activity" on a network that supports payment processing for purchases made at Chipotle restaurants.
The company said that it believes it has taken the proper steps to stop the activity.