Chipotle Shares Fall After 3Q Results

CHICAGO (AP) — Shares of fast food chain Chipotle Mexican Grill Inc. fell Friday, a day after the burrito maker offered disappointing growth forecasts for 2010.

On Thursday, Chipotle posted a stronger-than-expected third-quarter profit and said it continued its previously announced plans to add 120 to 130 new locations next year.

But, the company said, a quarter of those new locations will be built in its smaller store format, which costs less to build but also typically draws fewer customers.

"In our view, the strategy signals the potential saturation of larger format restaurants and could cause investors to question (Chipotle's long-term) profitable growth trajectory," Wedbush analyst Rachel Rothman wrote to investors in a research note published Friday.

Chipotle said it earned $34.5 million, or $1.08 per share, during the three months ended Sept. 30, up from a profit of $19.5 million, or 59 cents per share, a year ago.

Revenue climbed almost 14 percent to $387.6 million.

Analysts surveyed by Thomson Reuters expected the restaurant chain to earn 88 cents per share on revenue of $388.2 million.

Chipotle operates more than 900 restaurants.

Shares of the restaurant chain, which is based in Denver, fell $7.45, or 8.3 percent, to $82.07 in afternoon trading.