Shares of Chipotle soared, gaining 11.7% to $490.33, as investors cheered the company's third-quarter earnings report released the night before. The Denver-based burrito maker reported better-than-expected revenue and same-store sales comparisons, but fell short of Wall Street expectations on profit, as margins took a hit from higher food costs.
Chipotle "delivered another solid [quarter] and outlook. While EPS missed, this will be viewed as a minor negative relative to the healthy SSS result and confirmation of a price increase next [year]," Deutsche Bank analyst Jason West wrote in a research note.
The fast casual Mexican eatery said profit rose 15% to $83.4 million, or $2.66 a share. Analysts were expecting the Chipotle to report earnings of $2.78 a share. Despite the earnings miss, revenue came in better-than-expected, up 18% from last year's third quarter to $826.9 million. Same-store sales comps were strong, up 6.2% over last year's third quarter -- a result of higher traffic.
Chipotle also raised same-store sales comp guidance for the year, now expecting growth in the "mid-single-digit" range. It also plans to increase the number of store openings in 2014, to between 180 and 195 new stores.In 2013, Chiptole said it expects to open between 165 and 180 new stores.
On the other hand, shares of Panera slipped 1.8% to $157.69 after Wedbush Securities downgraded the stock to "neutral" from "outperform" based on concerns about store traffic in the third quarter.