Chipotle misses big on earnings, shares plunge 6%

Business Insider

Chipotle on Tuesday reported third-quarter earnings that missed the lowest forecast from Wall Street analysts.

The fast-casual chain reported adjusted earnings per share of $US0.69, missing analysts’ consensus forecast for $US1.63 according to Bloomberg.

Sales at stores open for at least one year rose 1% (1.2% forecast.)

Ahead of the earnings release, analysts were focused on the mixed reviews that Chipotle’s newly introduced queso got.

RBC’s David Palmer cut his price target on the stock to $US330 from $US400 on Friday on the expectation that queso and other marketing efforts would disappoint.

Analysts were also looking out for the impact of a new norovirus outbreak in July on same-store sales, and any slowdown caused by Hurricanes Harvey and Irma.

Chipotle shares fell by as much as 6% in extended trading.

More to come, refresh this page for updates.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.