Chipotle disappoints Street on key sales metric

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Chipotle Mexican Grill delivered a mixed report on Tuesday. Its earnings topped estimates but revenue fell just shy of forecasts. A key restaurant industry sales metric also missed Wall Street's high expectations for the restaurant chain.

Chipotle stock dropped 5 percent after the report. (Click here to track its stock.)

Net income rose to $122.6 million, or $3.88 per share, from $83.1 million, or $2.64 per share in the year-ago period. Revenue increased to $1.09 billion from $904 million a year ago.

A Chipotle restaurant in New York.
Scott Mlyn | CNBC

Analysts had expected Chipotle Mexican Grill to report earnings of $3.66 a share on $1.11 billion in revenue, according to a consensus estimate from Thomson Reuters.

Comparable restaurant sales, a key industry metric, rose 10.4 percent during the quarter. Sales at these restaurants, which were in operation for at least 13 full months, were forecast to rise 11.8 percent, according to a Consensus Metrix estimate. Comps have been fueled in part by a price increase the restaurant took last year.

"People have always pointed out valuation, and I think that's really catching up to that story as well," said Steve Grasso, Managing Director of Institutional Trading at Stuart Frankel on CNBC's "Closing Bell."

For 2015, the burrito seller reiterated the expansion and comp sales guidance it gave during its last quarterly report.

For months now, Chipotle has suffered from low supply of its carnitas product. The company has said it is working to source more pork that is up to its animal welfare standards.