Chipotle Shares Tumble After Q2 Results

Shares of

dropped more than 6 percent in after-hours trading after the company reported results for its second quarter. The Denver, Colorado-based company posted quarterly net income of $140.2 million, or $4.45 per share, versus $110.3 million, or $3.50 per share, in the year-ago quarter. Its revenue rose 14.1 percent year-over-year to $1.2 billion. However, analysts were expecting earnings of $4.44 per share on revenue of $1.22 billion. The average estimate among 129 Estimize users was for earnings of $4.45 per share and revenue of $1.22 billion. Comparable restaurant sales climbed 4.3 percent during the quarter. Restaurant level operating margin widened 70 basis points to 28.0 percent. Food costs slipped 150 basis points to 33.1 percent of revenue. The company opened 48 new restaurants during the quarter. "We feel good about our second quarter results, as our revenue, average restaurant sales, and comparable restaurant sales have continued to grow even comparing to a very strong 2014. The strength of our business is the product of our unique food culture and unique people culture, and we constantly find ways to improve, and overcome challenges we encounter – whether that means non-GMO ingredients, adding new pork suppliers to ensure food with integrity, or reinventing the way tortillas are made at scale. Our relentless focus on the key drivers of our business allows us to continue to change the way people think about and eat fast food," said Steve Ells, founder, chairman and co-CEO of Chipotle. For 2015, Chipotle expects comparable restaurant sales growth in low-to-mid single digit range. It also projects new restaurant openings at or above the high end of its earlier-issued range of 190 to 205. Chipotle shares dipped 6.53 percent to $629.10 in the after-hours trading session.