Chipotle Mexican Grill (CMG) saw its shares decline in late trading following a disappointing sales outlook.
On Tuesday, the company projected that same-store sales growth for 2024 would fall within the mid- to high-single digit range. Analysts had expected a 7.5% growth rate, according to estimates from Visible Alpha. In the third quarter, Chipotle reported a 6% increase in comparable restaurant sales and a 13% rise in revenue, totaling $2.8 billion.
After closing at $60.49 on Tuesday, Chipotle’s shares fell more than 4% in late trading.
The company did not confirm whether interim CEO Scott Boatwright would be appointed to the permanent position.
Boatwright stepped in after former CEO Brian Niccol left in late August to take the helm at Starbucks (SBUX), which is set to announce its own earnings tomorrow. Additionally, Chipotle will lose longtime CFO Jack Hartung in 2025.
Chipotle met analysts’ revenue expectations for the third quarter, reporting a net income of $387.4 million, exceeding the consensus estimate of $346 million from Visible Alpha.
Despite the recent downturn, Chipotle’s stock has risen about 30% this year.
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