Chipotle Mexican Grill shares rose Thursday after more than expected earnings and earnings in the second quarter.
Net income dropped to $ 46.8 million, or $ 1
Revenue rose 8.3 percent to $ 1.27 billion, better than Wall Street predicted $ 1.26 billion.
Same-store sales, an important restaurant index, grew 3.3 percent, up from 2.7 percent expected by StreetAccount. The company said that an increase in the average check, including an increase in the menu price by 4 percent and more customers who decided to add Queso to their meals, helped increase sales in the same store. However, traffic fell by 1.8 percent.
It's been about a month since the company announced plans to spend up to $ 135 million to win back customers and reposition Chipotle as a lifestyle brand. Expenditures include a new advertising campaign, digital investments to accelerate mobile and online orders, and the cost of closing 65 underperforming locations.
"It takes time to build a culture of accountability," said Niccol conference call Thursday. "… We know that when the food is delicious, the restaurant's feel is great, and we remove the friction from the flow of the ordering process, it does not matter, the channel, we delight the customers."
The hope is that Niccol, who joined the company on March 5, can revitalize the brand. He is well known for marketing and technological innovation, two key areas that Chipotle did not prioritize. At Taco Bell, he introduced mobile ordering and payment, repositioning the Mexican chain as a lifestyle brand, and pushing for more ingenuity in the kitchen.
The company's stock has risen more than 50 percent since January, a sign that investors are banking on Niccol's changes that revive the brand.