Investors hammered the stock. Shares of Chipotle plunged more than 22% in Friday trading, falling from over $403 a share yesterday to $312 this afternoon.
For the quarter, Chipotle posted earnings of $81.7 million, up 61% over $50.7 million in profits during the same time last year.
Revenue at the restaurant chain jumped 21% to $690.9 million compared to last year. Wall Street, however, was looking for revenue of $704.8 million, the Associated Press noted.
EPS for the quarter was $2.56, up from $1.59 last year, beating the $2.30 analysts’ had predicted.
Same store sales rose 8% during the quarter.
For a stock which had seen its value more than quadruple in five years, the revenue miss spooked investors who worried that its rapid rise may have peaked.
For a “momentum stock” like Chipotle escalating investor interest drives share prices up, but as prices rise, investor expectations also soar, eventually become so high that they cannot be sustained and a share-price correction becomes inevitable.