DENVER Shares of Chipotle Mexican Grill Inc. plummeted Friday as the company warned that its earnings would fall short in the third quarter on slow sales and escalating food costs. The operator of more than 775 burrito restaurants also said it would likely raise menu prices in the fourth quarter.
Chipotle said its earnings for the current third quarter, which ends Sept. 30, would be "slightly below" the 62 cents a share it earned a year ago. Analysts on average had expected earnings of 72 cents a share, according to estimates from Thomson Financial.
Same-store sales in the current quarter were in the low-single digits, Chipotle said. Full quarterly results are scheduled to be released in the third week of October.
For the full fiscal 2008, Chipotle lowered its same-store sales outlook to growth in the low- to mid-single digits. Chipotle previously had forecast same-store sales growth in the mid-single digits. The company said it still expects to add 130 to 140 new stores by year-end.
In midday trading on Friday, Chipotle's stock fell nearly 20 percent to $57.04. Over the past 52 weeks, the company's stock has traded between $65.15 and $155.49.