Business

Chipotle's profit miss estimates as COVID-19 costs mount

Chipotle Mexican Grill Inc on Tuesday missed Wall Street estimates for quarterly profit, hurt by costs related to keeping its business running during the COVID-19 pandemic, sending the fast-casual chain's shares down about 2per cent after the closing bell.

FILE PHOTO: The logo of Chipotle Mexican Grill is seen at the Chipotle Next Kitchen in Manhattan
FILE PHOTO: The logo of Chipotle Mexican Grill is seen at the Chipotle Next Kitchen in Manhattan, New York, U.S., June 28, 2018. REUTERS/Shannon Stapleton/File Photo GLOBAL BUSINESS WEEK AHEAD
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REUTERS: Chipotle Mexican Grill Inc on Tuesday missed Wall Street estimates for quarterly profit, hurt by costs related to keeping its business running during the COVID-19 pandemic, sending the fast-casual chain's shares down about 2per cent after the closing bell.

The burrito chain's strong digital operations have helped the company ride out the worst of the pandemic, although its expenses have climbed as it bolsters its delivery network.

Digital sales rose nearly three-fold and drove a 5.7per cent rise in comparable sales, helped by a surge in online orders in some parts of the United States due to the COVID-19 pandemic.

Total revenue increased 11.6per cent to US$1.6 billion for the fourth quarter ended Dec. 31, the company said.

Excluding one-time items, the company earned US$3.487 per share, missing the estimate of US$3.73, according to IBES data from Refinitiv.

(Reporting by Nivedita Balu in Bengaluru; Editing by Ramakrishnan M. and Anil D'Silva)

Source: Reuters