Chipotle 3rd quarter results miss expectations
DENVER (AP) — Restaurant chain Chipotle Mexican Grill Inc. said Thursday that its third-quarter net income rose 20 percent as traffic grew and it opened more stores. But the results fell short of Wall Street expectations and the company's stock fell 13 percent in aftermarket trading.
The Denver-based company has been a market darling for some time as consumers have flocked to its growing chain of fast-casual restaurants for tacos, bowls and burritos. But its revenue results, despite rising 18 percent, missed expectations for the second-straight quarter.
Chipotle's net income rose to $72.3 million, or $2.27 per share, from $60.4 million, or $1.90 per share, last year. Analysts expected $2.29 per share, according to FactSet.
Revenue rose to $700.5 million from $591.9 million a year ago. Analysts expected $702.9 million.
Revenue from restaurants opened at least one year rose 4.8 percent. The measure is a key gauge of a restaurant chain's growth because it excludes results from newly opened or closed restaurants. The rise was driven by more traffic and price increases.
Spending on food, beverages, packaging, labor and other operating items all rose during the quarter.
During the quarter Chipotle opened 36 new restaurants and now operates a total of 1,350.
Shares fell $37.40 to $248.53 in aftermarket trading following the release of the earnings report. The stock is down about 15 percent this year through the end of Thursday's regular-session trading.