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Chipotle tops Street forecasts; stock jumps

Chipotle Q2 earnings beat

Chipotle Mexican Grill's stock soared Tuesday after the fast-food chain easily beat Wall Street expectations for net income and revenue.

The stock was was more than 10 percent in premarket trading. (Click here for the latest price.)

After the closing bell Monday, the company reported net income had risen $110.3 million, or $3.50 per share, compared with $87.9 million, or $2.82 a share a year earlier.

Revenue increased to $1.05 billion from $817 million a year ago.

Analysts were expecting Chipotle Mexican Grill to deliver earnings of $3.09 a share on $990 million in revenue, according to a consensus estimate from Thomson Reuters. Chipotle's earnings were 21 cents higher than even the most optimistic of 28 Wall Street earnings estimates compiled by Thomson Reuters.

Comparable restaurant sales increased 17.3 percent, smashing Consensus Metrix estimates that called for 10.5 percent.

This year, Chipotle has battled high food inflation as prices for beef, cheese and avocados soared. As a result, the company began raising prices by roughly midsingle digits during the second quarter. This marked the company's first nationwide price increase in three years. The company's big beat shows the resiliency of demand for Chipotle's burrito in a restaurant industry that's struggled to maintain traffic.

The company noted its comparable sales beat resulted by increased traffic and, to a lesser extent, an increase in average check.

Despite the price hikes, restaurant level operating margin held roughly steady.

—By CNBC's Katie Little