Mixed Bag From Fast Food Earnings

Chipotle beats, but concerns linger, while KFC parent Yum! Brands' China strength helped overshadow slight miss.
Chipotle Mexican Grill wrapped up its fiscal first quarter with a 23% gain in profits, alexa bags the fast food burrito chain company said late Wednesday.

Net income rose to $46.4 million, or $1.46 per share, from $37.8 million, or $1.19 per share, in last year's first quarter. Chipotle Mexican Grill ( CMG - news - people ) said revenue rose 24%, to $509 million.
Both revenue and earnings per share exceeded analyst expectations, but couldn't prevent a 4.1% decline in the company's share price Thursday morning. In related news, U.S. authorities are investigating the immigration status of employees at the burrito chain.

Also late Wednesday, Yum! Brands ( YUM - news - people ) reported first-quarter earnings of $264 million, or 54 cents per share, compared to $241 million, or 50 cents per share, in last year's first quarter.

Adjusted earnings of 63 cents per share fell just short of mulberry bags analyst expectations, though revenue exceeded estimates, growing to $2.43 billion from $2.35 billion.

The parent of Taco Bell, KFC and Pizza Hut drew strength in particular from its China operations. Shares were up 5.3% Thursday.