Chipotle Mexican Grill Inc. shares rose roughly 2% in the extended session Tuesday after the company beat earnings and revenue expectations.
But the stock was down 2% in premarket trade Wednesday as analysts weighed in on the numbers. Chipotle /zigman2/quotes/200781108/composite CMG -0.87% reported third-quarter net income of $98.6 million, or $3.47 a share, compared with $38.2 million, or $1.36 a share, in the year-ago period. Adjusted for items such as restaurant asset impairment expense and restructuring, among other things, earnings were $3.82 a share. Revenue rose to $1.4 billion from $1.23 billion in the year-ago period.
Analysts surveyed by FactSet had estimated adjusted earnings of $3.21 a share on revenue of $1.38 billion. Wall Street expected the company to benefit from the falling price of avocados and its carne asada, which the company introduced in September.
In the earnings release, the company said that food, beverage and packing costs declined 0.2% to 33.2% of revenue due to national menu price increases partially offset by the higher costs of “several ingredients.” It was not immediately clear whether the company was referring to avocados.
For the fourth quarter, analysts model earnings of $2.90 a share and sales of $1.38 billion.