Chipotle shares rise in late trading despite earnings miss
Chipotle Mexican Grill Inc. shares are up 1.1% in Thursday after-hours trading after the company announced a successful start to its loyalty program, even as the company's earnings missed expectations. Chipotle reported net income of $25.6 million, or 87 cents per share, down sharply from $140.2 million, or $4.45 per share, for the same period last year. The FactSet consensus was 91 cents per share. Revenue totaled $998.4 million, down from $1.2 billion last year and below the FactSet consensus of $1.05 billion. Same-restaurant sales decreased 23.6%. Chipotle has struggled to turn around its business after a series of illness outbreaks that included E.coli and norovirus. Chipotle opened 58 new restaurants during the second quarter. The company said nearly 30% of transactions at the start of the third quarter are engaged with the company's new loyalty program, Chiptopia. Chipotle shares are down 37.9% for the past year while the S&P 500 is up 2.2% for the same period.
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