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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Food & drink

Chipotle drops after serving up revenue miss

Chipotle Mexican Grill Inc (NYSE:CMG) shares slumped ahead of Wednesday’s opening bell after third-quarter revenue figures disappointed.

Revenue climbed by 13% to $2.79 billion over the three months to September, the restaurant operator reported on Tuesday, missing analysts’ estimates for $2.82 billion.

Comparable restaurant sales growth of 6% was also shy of market expectations for 6.3%.

Chipotle noted comparable sales reflected 3.3% growth in transactions and a 2.7% uptick in average checks, as total revenue was driven by 86 new site openings during the quarter.

Digital sales made up 34% of food and beverage revenue, while costs increased to 30.6% of turnover from 29.7% a year earlier.

Profit came in ahead of expectations, as a 17.4% increase in adjusted diluted earnings per share to $0.27 outdid estimates for $0.25.

Interim CEO Scott Boatwright reiterated Chipotle’s aim of opening 7,000 restaurants in North America and moving “towards a more global brand”, with the chain having been operating around 3,600 sites globally as of September.

Shares fell by 3.8% to $58.17 in pre-market trading.

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