DENVER (AP) — Chipotle Mexican Grill Inc.'s earnings soared more than 61 percent in the second quarter but its shares plunged in Thursday after-hours trading after the popular restaurant chain's revenue growth missed expectations.
The Denver-based company has been a market darling for some time as consumers have flocked to its growing chain of fast-casual restaurants for tacos, bowls and burritos.
Chipotle's stock price has grown more than four-fold in the past five years. It's seemingly endless growth and popularity with consumers and investors alike has caused a few skeptics to wonder if a burrito bubble may be building
Chipotle said that it earned $81.7 million, or $2.56 per share, for the quarter that ended June 30. That's compared with $50.7 million, or $1.59 per share, in the same quarter last year.
Its total revenue increased nearly 21 percent to $690.9 million as it added new sites and saw revenue gains at its established restaurants. Chipotle said that revenue from its restaurants open at least a year increased 8 percent on increased traffic and higher prices. That's a key measure of financial performance as it strips away the impact of recently opened or closed stores.
While this would be meteoric growth for many other restaurants, it wasn't enough to satisfy some expectations. Analysts polled by FactSet were expecting the company to earn $2.30 per share on revenue of $704.8 million.
Shares gained $5.80 to close at $403.86 before the results were released but fell 12 percent in after-hours trading following the report.
Chipotle operates 1,316 stores across the country as of the end of the quarter. It expects to add 155 to 165 new restaurants for the full year.