Chipotle Mexican Grill Inc said sales at established restaurants likely fell 4.8 percent in the fourth quarter and that costs came in higher than it had previously anticipated.
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Chipotle's shares were down 3.2 percent at $381.99 in premarket trading.
The company said it incurred higher-than-expected expenses due to higher promotional spending and costs related to television advertising, as it fights to recover from a string of food safety lapses late last year.
Food costs were also higher than anticipated due to increased costs of avocados, the company said in a regulatory filing on Tuesday.
The company estimated sales of $1.04 billion for the quarter ended December, below the average analyst estimate of $1.05 billion, according to Thomson Reuters I/B/E/S.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Saumyadeb Chakrabarty)