Chipotle misses quarterly sales estimates

Chipotle misses quarterly sales estimates

(Reuters) – Chipotle Mexican Grill Inc missed quarterly comparable sales expectations on Tuesday, in a sign that price hikes are taking a toll on demand for the restaurants burritos and rice bowls.

Shares of the company fell 4.4% in extended trading.

While Chipotle enjoyed steady demand for its pricier menu items from its relatively wealthier customer base for much of last year, persistently high inflation across product categories is causing even affluent diners to look for cheaper options such as McDonalds.

Visits to Chipotle restaurants fell 10.2% in the fourth quarter, according to data from Placer.ai. McDonalds visits rose 29.4% in the same period.

Comparable sales at the California-based chain rose 5.6% in the fourth quarter ended Dec. 31, while analysts on average expected a 7.1% rise, according to Refinitiv IBES.

Revenue rose to $2.18 billion from $1.96 billion in the quarter, missing estimates of $2.23 billion.