:max_bytes(150000):strip_icc()/GettyImages-2165961570-a6f581b536c74492b6631019b203c1f3.jpg "Chipotle Stock Falls After Sales Outlook Disappoints Investors")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2165961570-a6f581b536c74492b6631019b203c1f3.jpg)
Key Takeaways
- Chipotle said full-year same-store sales could come in below analysts’ expectations of 7.5%.
- The fast-casual chain anticipates same-store sales increases in the mid-to- high-single digit range.
- Share prices fell in after-hours trading.
Chipotle Mexican Grill (CMG) shares fell in late trading after the company indicated that same-store sales growth may be lower than anticipated.
Chipotle late Tuesday said it expects to see same-store sales increase in the mid- to high-single digit range for 2024. Analysts were anticipating a 7.5% same-store growth rate, according to estimates compiled by Visible Alpha. The fast-casual 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, were recently down more than 4% in late trading.
Chipotle didn’t say whether it would formally appoint interim CEO Scott Boatwright to the top post. Boatwright has been in the position since former CEO Brian Niccol left in late August to lead Starbucks (SBUX). (Starbucks is set to report its own results tomorrow afternoon.) Chipotle is also slated to lose longtime CFO Jack Hartung in 2025.
Chipotle performed in line with analysts’ third-quarter revenue expectations and generated $387.4 million in net income, beating the consensus estimate of $346, as compiled by Visible Alpha.
The stock is up about 30% this year so far.