**Chipotle Reports Mixed Q3 Results with Earnings Surpassing Expectations but Revenue Falling Short**

Chipotle Mexican Grill delivered mixed results in its latest quarterly report, with earnings surpassing Wall Street estimates while revenue fell slightly below expectations. Despite an increase in customer traffic, shares of the burrito chain fell 3% in after-hours trading.

The company reported earnings per share of 27 cents after adjustments, edging past the anticipated 25 cents. However, revenue for the quarter came in at $2.79 billion, falling short of the projected $2.82 billion. Overall, Chipotle reported a net income of $378.4 million or 28 cents per share, up from $313.2 million or 23 cents per share in the same period last year.

A significant factor in the increased costs was Chipotle's decision to offer more generous portions following social media criticism over the size of its burrito bowls. Despite these increased food and beverage costs, the company posted net sales growth of 13% to $2.79 billion. Same-store sales saw a 6% rise, though this was slightly below StreetAccount's estimate of 6.3%. Notably, foot traffic to Chipotle locations increased by 3.3% during the quarter, a welcome contrast to the broader industry trend of declining restaurant visits.

Interim CEO Scott Boatwright noted on CNBC's "Closing Bell: Overtime" that all income groups contributed to the growth, with wealthier customers more willing to pay higher prices for premium items like the recently reintroduced smoked brisket. This limited-time menu item, which is currently more expensive than both steak and beef barbacoa, helped boost sales towards the end of the third quarter after a slower start.

Boatwright, who transitioned to the role of interim CEO following Brian Niccol's departure in August, assured investors that Chipotle's strategic direction remains steady. Digital sales accounted for a substantial 34% of the company's quarterly revenue from food and beverages. Additionally, Chipotle opened 86 new locations, 73 of which feature a "Chipotlane" for online order pickups.

Looking ahead, Chipotle is investing in new kitchen equipment, including produce slicers and dual-sided grills, to enhance food preparation efficiency. The company expects to implement these improvements across all locations by next summer. For the full year, Chipotle has maintained its forecast for same-store sales growth in the mid- to high-single-digit range and plans to open between 285 and 315 new restaurants. Looking further ahead to 2025, the company aims to launch between 315 and 345 new outlets, with over 80% featuring a Chipotlane.