Chipotle Mexican Grill defied industry slowness by reporting quarterly profitability and revenue on Wednesday that exceeded analysts' projections as restaurant traffic increased.

In extended trading, the company's shares increased by around 13%; however, they lost the most of those gains and ended the day 3% higher. Due to investor worries about the state of the restaurant business, Chipotle's stock had fallen 17% as of Wednesday's closure. Towards the end of June, the business divided its stock 50 to 1.

According to an LSEG survey of analysts, the following is how the company's results for the quarter that concluded on June 30 compare to what Wall Street had anticipated:

• Profits per share: adjusted at 34 cents compared to the estimated 32 cents

• Revenue beat: $2.97 billion versus the projected $2.94 billion

After a year of $341.8 million, or 25 cents per share, the burrito company posted second-quarter net income of $455.7 million, or 33 cents per share. Price increases that helped offset increased avocado prices and more oil used to cook tortilla chips this quarter are what caused Chipotle's profits to increase compared to the same period last year, indicating a strong financial performance.

Chipotle made 34 cents per share when goods were excluded.

CEO Brian Niccol stated on CNBC's "Closing Bell: Overtime" on Wednesday that the demand for the company's meals peaked in April. June's same-store sales ended up being about 6% higher. Executives claimed that because of the Fourth of July vacation, Texas weather delays, and a recent tech breakdown, July has been more challenging to comprehend.

Notwithstanding negative feedback on social media from patrons complaining that their burrito bowls are smaller, traffic to its restaurants climbed by 8.7%. Although the corporation has denied cutting amounts, it is already educating staff members to make sure consumers are satisfied with the amount of their burrito bowls, which will strain profit margins.