Chipotle Gets Burned After Big Q3 Earnings Miss

Chipotle Mexican Grill, Inc. CMG is getting pummeled after reporting a big third-quarter earnings miss after Tuesday's market close.

Chipotle reported third-quarter EPS of $1.33, missing analyst estimates by 30 cents. Sales also fell short of expectations, coming in about $20 million shy of estimates at $1.12 billion.

Other Highlights

• Revenue Increases 8.8%
• Comp Sales Increased 1%
• Opened 38 new restaurants in the quarter
• Chipotle sees FY17 Comps up 6.5%

“We continued to make important progress to improve the guest experience at our restaurants during the quarter,” said Steve Ells, founder, Chairman and CEO of Chipotle. “Our strategic initiatives in operations, innovating our digital sales platform, new menu introductions, and marketing the brand are starting to take hold. Despite several unusual impacts during the quarter, including the impact of hurricanes, we maintained our focus and saw some encouraging signs.”

Shares of Chipotle declined more than 6 percent to $304 in the after-hours session.

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Image Credit: Miosotis jade (Own work) [CC BY-SA 3.0], via Wikimedia Commons