Chipotle Mexican Grill, the popular burrito chain, reported better-than-expected quarterly earnings on Thursday, attributing its success to higher menu prices for its signature burritos and bowls. Following the announcement, the company's shares surged more than 5% in extended trading.

According to a survey conducted by LSEG, formerly known as Refinitiv, analysts were pleasantly surprised by Chipotle's financial performance. The company reported an adjusted earnings per share of $11.36, surpassing the predicted $10.55. Additionally, its revenue stood at $2.47 billion, in line with expectations.

In the third quarter, Chipotle achieved a net income of $313.2 million, reflecting an increase compared to $257.1 million in the same quarter last year. Earnings per share rose from $9.20 to $11.32, excluding corporate restructuring costs. The rise in beef and queso expenses this quarter largely offset the impact of last year's menu price hikes.

Chipotle's recent decision to raise menu prices for the first time in over a year was cited as a response to inflation. Earlier in the year, the company had paused its aggressive price increases due to a decline in consumer spending on dining out. However, CEO Brian Niccol remained confident in Chipotle's pricing power and its ability to continue growing.

During the third quarter, Chipotle experienced a 5% increase in same-store sales, surpassing StreetAccount estimates of 4.6%. This growth was attributed to higher transactions and the impact of the menu price adjustments. The company opened a total of 62 new restaurants, with all but eight featuring the innovative "Chipotlane" drive-thru lanes for digital order pickups.

Looking ahead, Chipotle plans to open 285 to 315 new restaurants by 2024 and reiterated its forecast for mid-to-high single-digit same-store sales growth in 2023. The company's stock has already climbed 30% this year, boosting its market value to an impressive $49.8 billion.

Chipotle's ability to navigate increasing food costs through well-executed price adjustments and continued expansion reflects the resilience of the brand. As consumers embrace dining-out experiences once again, Chipotle seems poised to capitalize on its pricing power and maintain its upward trajectory in the coming years.