Shares of Chipotle Mexican Grill Inc. fell 1.1% late Tuesday after the fast-casual restaurant chain reported quarterly per-share profits above expectations and said it was “starting to see some success” after implementing changes. Shares had initially gained. Even avocado prices let up, further helping Chipotle’s bottom line. The company said it earned $43.8 million, or $1.55 a share, in the fourth quarter, compared with $16 million, or 55 cents a share, in the fourth quarter of 2016. The net income included a $6 million, or 21 cents a share, benefit from the U.S. tax overhaul, Chipotle said. Sales rose 7.3% to $1.1 billion, driven by new-restaurant openings and to a lesser extent by a 0.9% increase in comparable-restaurant sales, the company said. Analysts polled by FactSet had expected earnings of $1.32 a share on sales of $1.11 billion. The rise in comparable-restaurant sales was due to an increase in the average check, including a 2.4% impact from menu price increases for some restaurants in the second and fourth quarters, partially offset by a decrease in transactions, the company said. Food costs were 34% of revenue, but less than in the fourth quarter of 2016 thanks to the price increases, cost savings in paper and packaging products, and relief in avocado prices during the fourth quarter of 2017 compared to the fourth quarter of 2016. The company said it expects an increase in comparable-restaurant sales in the low single digits in 2018 and the opening of 130 to 150 new restaurants. Shares had ended the regular trading session up 1.3%.
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