The stock price of Chipotle Mexican Grill, Inc. (NYSE:CMG) surged by more than 15 percent to $506.83 per share around 2:39 P.M. in New York on Friday. The stock climbed significantly after the restaurant operator reported strong financial results for the third quarter of the current fiscal year.

Chipotle Mexican Grill Logo (CMG)

CMG’s shares rise

Over the past 52-week range, the shares of Chipotle Mexican Grill, Inc. (NYSE:CMG) went up from $233.82 to $508.22 per share.

During the period, Chipotle Mexican Grill, Inc. (NYSE:CMG) said its revenue increased by 18 percent to $826.9 million, and its net income went up by 15.3 percent to $83.4 million.The company reported $2.66 diluted earnings per share, an increase of 17.2 percent from its $2.27 diluted earnings per share in the same period a year earlier. Its earnings beat consensus estimates.

Chipotle Mexican Grill, Inc. (NYSE:CMG) reported that its comparable restaurant sales increased by 6.2 percent. The company said its restaurant level operating margin declined by 60 basis points to 26.8 percent. The company opened 37 new restaurants during the quarter.

Steve Ellis on CMG’s food

Steve Ellis, founder, chairman, and co-CEO of the company said, “Our unique food culture continues to resonate with our customers. We are proud of the investments we have made over the years to source sustainably raised ingredients, which allows us to serve delicious food. By sourcing the best possible ingredients and cooking them according to classic cooking techniques we continue to demonstrate that just because food is served fast, it doesn’t have to be a typical fast food experience.”

Hedge fund manager, David Einhorn of Greenlight Capital owns a significant short position in Chipotle Mexican Grill, Inc. (NYSE:CMG). Einhorn devoted a portion in its hedge fund letter explaining why the restaurant operator is a good short. The hedge fund manager said Chipotle’s ability to raise prices without losing customers is hindered by competition, and he projected that the company will report lower income than consensus in 2013 and 2014.

Jeffrey Gundlach bearish sentiment

In June, DoubleLine Capital’s Jeffrey Gundlach also expressed his bearish conviction on Chipotle Mexican Grill, Inc. (NYSE:CMG) during an interview with CNBC. He expressed certainty that the stock would go down.

Meanwhile, analysts at Goldman Sachs Group Inc (NYSE:GS) recently issued a report indicating that Chipotle Mexican Grill, Inc. (NYSE:CMG)’s brand factor is fading. The financial research firm indicated that Chipotle’s customers are eating less often in its restaurants.