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Actionable news in CMG: CHIPOTLE MEXICAN GRILL Inc,

Chipotle shares jump on earnings beat, attributes Virginia norovirus to sick worker

Chipotle Mexican Grill said it more than doubled its second-quarter earnings from a year ago, aided by lower costs and an improved profit margin.

Shares of the company rose 3.5 percent after the closing bell on Tuesday.

The stock gain was a welcome change after shares fell nearly 12 percent since last Tuesday, when the news of a norovirus outbreak at a restaurant in Sterling, Virginia first broke. A company investigation confirmed that the restaurant's leadership was not following safety protocols and a staff member was working while sick.

While the company was able to outpace analysts' expectations, its revenue fell short.

  • EPS: $2.32 vs. $2.18 expected, according to Thomson Reuters
  • Revenue: $1.17 billion vs. $1.19 billion expected, according to Thomson Reuters
  • U.S. same-store sales: 8.1 percent vs. 9.7 percent expected, according to StreetAccount

Chipotle posted net income of $66.71 million, or $2.32 per share, on $1.17 billion in revenue. The burrito chain was expected to report earnings of $2.18 per share on $1.19 billion in revenue, according to Thomson Reuters estimates.

A year ago, Chipotle earned $25.6 million, or 87 cents a share, on revenue of 8.4 million.

The company said that sales were boosted by improved consumer traffic, reduced promotional activity and an increase in average check.

Same-store sales rose 8.1 percent during the quarter, disappointing Wall Street, which had...


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