Despite Chipotle's earnings miss this week, an analyst said that there is still hope for the fast casual restaurant chain in the coming years.
"This brand is the choice of a new generation, it's the millennials' favorite fast casual brand, so there is reasons to really be hopeful that they're gonna get it going on comps [same store sales]," David Palmer, RBC Capital markets analyst, told CNBC's "Squawk on the Street" Wednesday.
Shares were lower on Wednesday after the company reported an earnings miss a day earlier. Chipotle's sales growth at established restaurants grew at a much slower rate in the third quarter, sending the company's shares down 6.4 percent in extended trading on Tuesday.
Its same-store sales rose 2.6 percent in Q3 2015, compared to a 19.8 percent increase for the same quarter last year. This quarter edged above a Consensus Metrix estimate of 2.5 percent. It was mostly driven by an increase in transactions with a 0.7 percent increase from a price hike in steak and barbacoa in some markets.