Chipotle shares rise as burrito chain sharpens focus on traffic revival
Lila Johnson is a seasoned business reporter with a background in finance, having graduated from the University of North Dakota. She has previously worked with local business journals and focuses on small business success stories and entrepreneurial initiatives.
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Oct 29 (Reuters) Chipotle Mexican Grill shares rose 7% in premarket trading on Thursday on signs CEO Scott Boatwright s efforts to bring back diners with new menu launches and a marketing push were paying off. The burrito chain expects to exit the current quarter with comparable sales up around 3% to 4%, from the 2.1% rise posted in the three months through September, executives said on a post-earnings call on Wednesday. Here are some details: • Earlier this week, the company said it was bringing back its smoked brisket for a limited period starting November 5, in time for the holiday and football season • Chipotle is countering costlier beef and higher freight charges from soaring diesel prices by raising menu prices by about 3% in the fourth quarter • Operating margin dropped to 13.7% in the third quarter from 15.9% a year earlier, and adjusted earnings per share of 27 cents missed estimates • We underappreciated Chipotle s willingness to sacrifice margin and invest