Chipotle beats, but stock falls on softer outlook

Chipotle CEO: Extraordinary quarter
Chipotle CEO: Extraordinary quarter   

Chipotle Mexican Grill delivered earnings and revenue that beat Wall Street's expectations on Friday, but the company forecast a drop in comparable restaurant sales from current double-digit levels.

After the earnings announcement, the company's shares fell in trading after the bell. (Click here to get the latest quotes for the burrito chain.

Chipotle
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While the company expects comparable restaurant sales increases in the mid-teens for 2014, it forecast comps to dip to low to mid-single digit increases for 2015.

This represents a significant drop from the levels the company has delivered so far this year. During the third quarter, the company comp sales shot up to 19.8 percent. Same-store sales were expected to jump 17.2 percent, according to a consensus estimate from Consensus Metrix.

The company, which has been a bright spot in the restaurant industry, delivered double-digit comparable restaurant sales in the first half of the year even amid price increases rolled out in the second quarter.

Net income in the third quarter rose to $130.8 million or $4.15 per diluted share from $83.4 million or $2.66 a share in the year-earlier period. Revenue increased 31.1 percent to $1.08 billion from $827 million a year ago.

Wall Street had forecast Chipotle to deliver earnings of $3.84 a share on $1.06 billion in revenue, according to a consensus estimate from Thomson Reuters.

Higher beef, avocado and dairy prices contributed to a rise in food costs at the chain. Still, the chain's restaurant level operating margin ticked 2 percent higher to 28.8 percent.