#Chipotle #Stock #Falls #Sales #Outlook #Disappoints #Investors
Key takeaways
- Chipotle said same-store sales for the full year may come in below analysts’ expectations of 7.5%.
- The fast-casual chain expects same-store sales increases in the mid-to-high single-digit range.
- Stock prices fell in after-hours trading.
Shares of Chipotle Mexican Grill (CMG) fell in late trading after the company indicated that same-store sales growth may be lower than expected.
Chipotle said late Tuesday that it expects same-store sales to increase in the mid-to-high single-digit range for 2024. Analysts had expected a 7.5% same-store growth rate, according to estimates compiled by Visible Alpha. The fast-casual restaurant chain reported that comparable restaurant sales grew 6% in the third quarter, while revenue increased 13% to $2.8 billion.
Chipotle shares, which closed Tuesday’s session at $60.49, recently fell more than 4% in late trading.
Chipotle has not said whether it will formally name interim CEO Scott Boatwright to the top job. Boatwright has been in the position since former CEO Brian Niccol left in late August to lead Starbucks (SBUX). (Starbucks is scheduled to report its own results tomorrow afternoon.) Chipotle is also set to lose longtime CFO Jack Hartung in 2025.
Chipotle performed in line with analysts’ expectations for third-quarter revenue and generated net income of $387.4 million, beating the consensus estimate of $346, as compiled by Visible Alpha.
The stock is up about 30% this year so far.
#Chipotle #Stock #Falls #Sales #Outlook #Disappoints #Investors
