 have announced an increase in sales compared to this time last year as the food chain recovered from food safety){kind=link}
Chipotle Mexican Grill Inc (NYSE:CMG) have announced strong figures for 2016, with an increase in sales showing the chain’s recovery from food safety lapses in 2015.
Chipotle have said that comparable sales increased in December by 14.7 percent, compared with a 30 percent decline in December 2015.
Since the highly publicised E.coli outbreak sent the company’s results plummeting in October 2015, Chipotle’s shares have since risen 4.5 percent to $413 in premarket trading on Tuesday.
The food chain have also said they have incurred higher than expected costs due to increased promotional spending and costs related to television advertising. On top of this, the company have said that the avocados bought to make guacamole have become more expensive, building up costs.
During the three-month period, the company’s overall sales rose to $1.04 billion, from $997.5 million this time last year. However, that was below Wall Street estimates for $1.05 billion.
Chipotle’s shares were up 0.5 percent after falling 3.2 percent in premarket trading on Tuesday.
The company also announced plans to buy back shares worth $100 million.