Chipotle Mexican Grill Inc. (NYSE:CMG) has said it recently detected "unauthorized activity" on the payment-processing network that supports its restaurants which it reported to the authorities and payment card processors.
The fast-casual Mexican food restaurant operator said it believes the issue has been contained, and additional security measures have been taken, although an investigation into the matter is continuing.
The firm said the probe is focused on card transactions at its restaurants from March 24, 2017 to April 18, 2017.
The company said it is still unable to estimate the costs related to the issue, but expects costs associated with the probe will be covered by insurance.
First quarter results beat market expectations
The disclosure follows Chipotle's first-quarter results released after the market close yesterday, which saw its earnings, revenue and same-store sales all beat expectations.
The firm posted net earnings of US$46.1mln, or US$1.60 a share in the quarter, beating forecasts of US$1.29 a shares, and a turnaround from a loss per share of US$0.88 a year earlier.
Chipotle’s quarterly revenues were up 28% to US$1.07bn, above forecasts of US$1.05bn thanks to improved customer traffic, fewer promotions, and higher average bills.
In pre-market trading today, Chipotle shares were up 0.5% at US$474, having soared 25% higher in the year to date, with a number of brokers’ raising target prices for the stock after the results.