(Bloomberg) -- Chipotle Mexican Grill Inc. said it implemented price hikes across its menu and projected restaurant sales growth, sending shares of the burrito chain higher on Tuesday.
Speaking at an event hosted by Baird, Chief Executive Officer Brian Niccol said the company expects average annual unit sales to rise to $3 million to $3.5 million in the near term, compared to the recently reported level of $2.4 million. Chipotle also confirmed to Bloomberg News in an email that it raised prices across the menu by as much as 4% last week.
These developments underscore the broader rebound in consumer spending as the U.S. economy reopens. Investors may be heartened by the fact that Chipotle, which already was performing well amid the pandemic, is pushing through price increases amid sustained pressure from wages and food costs.
Niccol said there are “still unknowns” when it comes to comparable-store sales, which is a closely watched indicator of restaurant success. However, Chipotle expects growth to continue for its off-premise sales, which include deliveries and takeout.
The shares rose as much as 2.2% to $1,352.80 on Tuesday in New York trading. The stock has fallen about 3% in 2021.
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