April 29 (Reuters) - Chipotle Mexican Grill posted a surprise rise in first-quarter sales on Wednesday as the burrito chain's efforts to refresh its menu with protein-rich entrees and snacks helped drive demand.
Shares of the company were up about 7% in extended trading.
Consumer preferences have shifted toward protein-packed meals and healthier, less-processed food options, benefiting the restaurant chain known for its burrito bowls and salads, even as macroeconomic uncertainty pressures spending,
especially among lower-income households.
The company reported a 0.5% rise in quarterly comparable sales, compared with analysts' expectations for a 0.8% decline, according to data compiled by LSEG.
Quarterly sales increased 7.4% to $3.09 billion, compared to analysts' average expectation of $3.07 billion, according to data compiled by LSEG.
Chipotle, which announced in February it would increase menu prices by 1% to 2% this year to offset higher raw material costs, has gained traction through menu innovation, affordable Tex-Mex offerings and enhanced marketing efforts. Its more affluent customer base has remained resilient and loyal.
The company's "Recipe for Growth", aimed at reversing sluggish demand by improving operations, boosting marketing and refreshing its menu, has helped lift foot traffic, with overall visits rising 5.8%, data from Placer.ai showed.
The data research firm also said the Chicken al Pastor dish that Chipotle reintroduced earlier this year has been the single biggest driver of consumer traffic at Chipotle recently.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Tasim Zahid)
