Chipotle Mexican Grill - What Happens To A Growth Stock When Sales Decline

'' Chipotle Mexican Grill

shares are trading lower by $49 at $643.52 in Wednesday's session. The catalyst for the sharp decline Q1 results from sales. Despite beating for EPS ($3.88 vs Est. $3.66(), the company came up shy on sales ($1.09B vs, Est. $111B). The issue reacted immediately to the poor sales figure dropping from Tuesday's close ($692.62) to 649.50 before rebounding to $672.40 in the after hours session before resuming its decline. . At the opening of the regular session, it opened at $655.13 and after a brief pop to $656.99, the bottom fell out once again. On the decline, it cascaded to $635.25 before staging a rebound over $640. That level represents its lowest level since December 17, when it bottomed at $635. Earlier this year, it made an all time high at $726.63 at the price as well. It should be noted that it shed $50.63 to $676 the following day following a EPS beat of $0.16 but came up flat on sales side at $1.07B. A great of example of what happens to a growth stock, when the rate of growth does not continue to meet Wall Street expectations.