Chipotle sales disappoint and now the stock is tumbling (CMG)
Chipotle just reported same-store sales that missed expectations and the stock is falling after hours.
Same-store sales at Chipotle rose 10.4% in the first quarter, missing expectations for growth of 11.8%.
Adjusted earnings per share, however, beat expectations, while the company's revenue in the quarter was roughly in-line with expectations.
EPS came in at $3.88 on revenue of $1.09 billion; analysts were expecting EPS of $3.65 on revenue of $1.1 billion.
Following these numbers, shares of Chipotle were down as much as 5% in after hours trade.
In a release, Chipotle CEO Steve Ells said, "The quarter was not without its challenges however, as we suspended one of our primary pork suppliers and are exploring options to increase the supply of pork that meets our high standards." In January, Chipotle stopped serving carnitas at hundreds of its restaurants.
The company said that same-store sales growth was primarily driven by an increase in the amount of money spent by customers and by increased customer traffic "to a lesser extent."
Food costs accounted for 33.9% of Chipotle's revenue, with the company noting that benefits from its menu price increase offset the increase in beef and tortilla costs from the same quarter last year.
In 2015, the company expects to open 195-205 restaurants and same-store sales growth in the low-to-mid single digits.
Chipotle opened 49 new restaurants in the first quarter.