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Chipotle's shares rose 4.5 percent to $413 in premarket trading
on Tuesday.
Sales at established restaurants, however, likely fell 4.8
percent in the fourth quarter ended December - the fifth
straight quarterly decline.
Chipotle said in October it expected established restaurant
sales to fall in the low single-digits percentages in the fourth
quarter but grow in high-single digits in 2017.
The company also announced plans on Tuesday to buy back shares
worth $100 million. (http://bit.ly/2iXQnRo)
Chipotle said it incurred higher-than-expected expenses due to
increased promotional spending and costs related to television
advertising.
The company estimated a profit of 50-58 cents per share for the
quarter, widely missing the average analyst estimate of 96
cents.
Food costs were also higher than anticipated due to increased
costs of avocados, a key ingredient in guacamole.
The company estimated sales of $1.04 billion, below the average
analyst estimate of $1.05 billion, according to Thomson Reuters
I/B/E/S.
Chipotle's shares were up 0.5 percent after falling 3.2 percent
in premarket trading on Tuesday.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by
Saumyadeb Chakrabarty)
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