Shares of Chipotle Mexican Grill, Inc. (NYSE: CMG) went down 10.6% from $304.63 to $272.21 after they released their fourth-quarter fiscal result, which reported the higher-than-expectation earnings. Revenue increased 7.3% compared with the Q4 of prior year, and the earnings per share went up 182% from $0.55 to $1.55.
Comparable-restaurant sales increased 0.9% during the quarter, which included a 0.6% reduction due to some one-time, deferred revenue that was recognized in the period a year ago.
However, the stock price is reflecting investors’ concerns about the declining traffic in stores. According to the Q4 released, the traffic was down 3% during this quarter, continuing this trend that began last July.
For the next year, Chipotle expects comparable-restaurant sales increases in the low single digits for the full year 2018, and between 130 and 150 new restaurants opening, compared with a net increase of 158 stores in 2017.
"Our focus this year will be to continue perfecting the dining experience, enhancing the guest experience through innovations in digital and catering, and reinvesting in our restaurants," said founder and CEO Steve Ells in the press release.