NEW YORK (TheStreet) -- Chipotle Mexican Grill (CMG) stock is retreating 7.07% to $521.52 in after-hours trading on Friday after the company provided its fourth quarter guidance that was lower than expected because of an E. coli outbreak that may be linked to the company's restaurants.
Comparable restaurant sales are anticipated to fall between 8% and 11% for the 2015 fourth quarter after comparable store sales dropped 16% in November.
The company expects its earnings to range between $2.45 and $2.85 per share for the quarter, while analysts had estimated earnings of $4.09 per share.
Early last month, the Centers for Disease Control and Prevention reported consumers who were ill with E. coli had eaten at Chipotle restaurants. As of November 10, there were 52 reported cases in nine states.
Additionally, Chipotle is rescinding its 2016 outlook of low-single digit growth in comparable restaurant sales.
"In light of recent sales trends and additional uncertainty related to the E. coli incident, we cannot reasonably estimate 2016 comparable restaurant sales at this time," the company said in a statement.
Separately, TheStreet Ratings team rates CHIPOTLE MEXICAN GRILL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate CHIPOTLE MEXICAN GRILL INC (CMG) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.