United Kingdom

Stock falls 6% after sales growth misses forecasts

Chipotle Mexican Grill (CMG) reported fiscal second quarter earnings results on Wednesday, July 26, after the market close that showed sales rose less than expected, sending the company’s stock down as much as 6.5% in after-hours trading.

Revenue grew 13.6% to $2.5 billion as same-store sales rose 7.4%, slightly lower than analyst estimates for sales to rise 7.67% from a year ago. Operating margins also rose last quarter to 17.2%, up from 15.3% a year ago but slightly lower than analyst estimates for margins closer to 17.55%.

The company did manage to post a bottom-line beat, with adjusted earnings per share coming in at $12.32, more than the $12.25 expected by analysts.