Chipotle Shares Nosedive Following Bottom Line Beat
Chipotle Mexican Grill, Inc. (NYSE: CMG) on Tuesday reported Q4 2015 EPS of $2.17 vs. estimates of $1.86. For the fourth quarter, Chipotle reported roughly 7.25 percent decline in quarterly revenues.
The company also opened the most stores in a quarter in the past two years, with 70 new stores. New store openings rose roughly 30 percent year-over-year.
Chipotle was served with a subpoena on January 28, broadening scope of a previously announced criminal investigation. The new request documents are related to the company's food safety measures going back to January 2013.
Average Sales Per Store bucked the uptrend, declining 4.27 percent quarter-over-quarter in Q4 2015 to $2.424 million per store.
Labor Costs for Chipotle spiked from 22.20 percent in Q3 2015 to 26.12 percent in Q4 2015
On the conference call after the report, Chipotle management guided Q1 EPS expectations toward break-even. Management also blamed January sales decline on the weather.
Shares declined more than 7 percent in the after-hours session to $443.
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