“Chipotle Mexican Grill Inc. (CMG) fell as much as 11 percent in early trading after reporting preliminary fourth-quarter profit that trailed analysts’ estimates.
The shares dropped 9.5 percent to $269 at 8:09 a.m. in New York, after earlier falling to $263.26. Chipotle declined 12 percent last year, the fifth-worse performance in the Russell 3000 Restaurants Index.
Profit in the quarter ended Dec. 31 may be $1.92 to $1.97 a share, the Denver-based restaurant chain said yesterday in a statement. Analysts projected $2.09, the average of estimates compiled by Bloomberg.
Food costs rose faster than the company expected, signaling the need to raise prices, according to John Glass, an analyst at Morgan Stanley in Boston. The burrito seller is up against increasing competition from rivals including Yum! Brands Inc. (YUM)’s Taco Bell, which is selling a more premium line of food called Cantina Bell….”
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