Chipotle Predicts it will still Struggle in 4Q

Photo: Google.com

Chipotle announced Tuesday that it expects same-store sales to fall 4.8 percent in the fourth quarter, which is still the best results they’ve seen in five quarters. Chipotle released their preliminary fourth-quarter results ahead of its presentation Tuesday at the ICR Conference in Orlando, FL. The company will release its full fourth-quarter and fiscal 2016 results on February 2. Chipotle’s stock rose more than 4 percent in early trading Tuesday after the announcement of their 4Q same-store sales. Chipotle expects its operating margin to be 13-14 percent in the fourth quarter. The operator said it saw higher expenses in the quarter than originally forecasted. They also spent more on television advertising in the quarter, and that higher avocado costs led to higher-than-expected food costs. To read more about Chipotles same-store sales click here.