(Reuters) – Chipotle Mexican Grill on Tuesday fell short of market expectations for third-quarter same-store sales growth as higher menu prices deterred demand for its rice bowls and burritos in the United States.
Shares of the company fell 7% in after-hours trading. They have risen nearly 30% so far this year.
Restaurant chains in the United States have struggled with muted demand this year as consumers pare back spending on higher-priced menus and hunt instead for deals.
Still, stable demand for Chipotle’s popular offerings of burritos, rice bowls and tacos from loyal customers has helped the company stave off some of the pressure being felt by fast food chains such as McDonald’s.
Foot traffic at Chipotle grew 12.7% in the third quarter, compared with about 15% growth in the preceding three-month period, according to data from Placer.ai.
Chipotle’s comparable sales rose 6% in the third quarter, compared with analysts’ average estimate of a 6.3% rise, according to data compiled by LSEG.
Revenue rose about 13% to $2.80 billion in the three months ended Sept 30, but narrowly missed analysts’ estimates of $2.82 billion.
(Reporting by Juveria Tabassum; Editing by Maju Samuel)
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