Chipotle Mexican Grill’s first-quarter profits rose 23%, surpassing the company’s expectations and raising projections for the year’s total profits.
The news of the profit rise comes only months after the government investigation of the restaurant for its use of illegal immigrants as employees. The investigation forced the company to lay off hundreds of employees.
“[Because of] the timing of our marketing expense and our decision to remain patient before passing along a higher cost of food inflation to our customers, our restaurant margins will continue to be under pressure in the short term,” said Chief Financial Officer Jack Hartung on a conference call, The Wall Street Journal reported, “But we are confident that our food culture, our people culture and our business model are as strong as they’ve ever been and that these margin pressures are cyclical and manageable within our model.”
Students at the university said that they were not surprised by the increase, and that they frequent the College Park restaurant.
“I love Chipotle, and everybody else does too,” sophomore neurobiology and physiology major Carolina Radzyminska said. “I eat there at least once a week, because I live so close. They offer cheap food that tastes great and comes fast, so it’s no surprise they’re doing well.”
Sophomore psychology and criminal justice major Wayne Evans echoed her approval.
“I think it’s good for the company. It shows that they’re doing the right thing so far as advertising and serving customer needs,” Evans said. “Hopefully they’ll pass the profits down to some of the customers”
The College Park Chipotle, which opened in 2001, was the highest grossing of the chain until 2005. To date, the location is still one of the most profitable in the country.
“We have to at least be in the top five,” Evans said. “Anytime you ever go there the line is practically out the door. It might be the perfect restaurant for college students: fast, cheap, and tasty.”