Reuters

(Reuters)

Chipotle Reports Slowest Comparable Sales Growth in 5 Quarters

Earnings Reuters

Chipotle Mexican Grill Inc (CMG) reported the slowest growth in quarterly same-restaurant sales in more than a year, hurt by the removal of pork products from some of its restaurants.

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Shares of the burrito chain, which also reported lower-than-expected sales for the first quarter, fell 4 percent in extended trading on Tuesday.

Chipotle had removed pork products from about one-third of its restaurants in January after discovering a supplier did not meet animal welfare standards.

This hurt the company as pork is a key ingredient in its popular carnitas dishes.

Chipotle's same-restaurant sales growth slowed to 10.4 percent in the quarter ended March 31 from at least 13 percent in the prior four quarters. Analysts on average had expected an 11.8 percent rise, according to Consensus Metrix.

Chipotle opened 49 new restaurants in the quarter.

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The company's net income rose to $122.6 million, or $3.88 per share, from $83.1 million, or $2.64 per share, a year earlier.

Revenue rose 20.4 percent to $1.09 billion

Analysts on average had expected a profit of $3.66 per share and revenue of $1.11 billion, according to Thomson Reuters I/B/E/S.

Chipotle's shares were trading at $664.33 after the bell.

(Reporting by Ramkumar Iyer in Bengaluru; Editing by Kirti Pandey)