Chipotle Earnings Rise, Miss Expectations

(RTTNews) - Chipotle Mexican Grill, Inc. (CMG) announced earnings for the third quarter that rose from last year, boosted by double-digit revenue growth.

However, the bottom line came in below the amount market analysts were predicting. The chain of Mexican-themed fast-food restaurants was able to boost revenue by adding new stores, but growth in comparable restaurant sales slipped from the second quarter and came in below 3 percent.

Chipotle, which is approaching 2,000 restaurants, also detailed an aggressive store opening plan going into fiscal 2016.

The company reported net income for the quarter of $144.9 million, or $4.59 per share. This was up from $130.8 million, or $4.15 per share, in the same period last year.

Analysts had predicted a profit of $4.63 per share, according to figures compiled by Thomson Reuters.

Revenue for the period climbed as well, rising to $1.22 billion. This compared to $1.08 billion in last year's third quarter. The top-line figure matched the $1.22 billion that analysts were predicting.

Comparable restaurant sales increased by 2.6 percent in the third quarter, down from the 4.3 percent growth seen in the second quarter. Comparable sales provides a look at growth at established locations, stripping out additional sales from newly opened restaurants.

Looking ahead, the company predicted a rise in comparable restaurant sales in the low-to-mid single digit range for fiscal 2015 as a whole.

Meanwhile, the company has stepped up its plan for new store openings. Chipotle now expects to open 215 to 225 new stores in fiscal 2015. This is up from its previous forecast of 190 to 205 new stores.

For 2016, the company indicated that a slowdown in comparable restaurant sales could be in the offing. Chipotle predicted low-single digit percentage growth in comparable restaurant sales, rather than the low-to-mid single digit growth slated for all of 2015.

Chipotle could see a further pick up in its store openings, however. The company sees 220 to 235 new stores for 2016, a number that is slightly higher than its new 2015 target.