Chipotle sags as sales disappoint

Chipotle shares faced the heat after the US restaurant chain reported first-quarter same-store sales that fell short of expectations and while disruption in pork supply affected its results.

The company said comparable sales climbed 10.4 per cent in the first quarter, down from a 16.1 per cent pace in the final three months of 2014 and short of analysts' expectations.

Executives forecast that same-store sales over the course of the year would rise by a "low-to-mid single-digit" percentage.

"The quarter was not without its challenges however, as we suspended one of our primary pork suppliers and are exploring options to increase the supply of pork that meets our high standards," said Steve Ells, the company's chairman and co-chief executive.

The Denver, Colorado-based company reported a 48 per cent rise in profits in the three months to the end of March from a year earlier to $123m, or $3.88 per share. Revenues advanced by a fifth to $1.1bn, with volumes at the average restaurant reaching $2.5m.

Analysts on Wall Street had expected the chain to report earnings of $3.63 a share on sales of $1.1bn.

Chipotle is a momentum-driven stock, having gained more than 400 per cent in the past five years. However, investors have grown more cautious as same-store sales growth at the company declined for the second consecutive quarter.

Shares of Chipotle, which have climbed 26 per cent in the past year, declined more than 6 per cent to $647.23.

Boeing shares fell 2 per cent to $150.45, after the company said first-quarter profits climbed as it delivered more aircraft.

Profits rose to $1.3bn, or 1.97 a share, from $965m, or $1.28 a share, in the same period a year ago. Revenue rose 8 per cent to $22.1bn.

Wall Street analysts had forecast earnings of $1.77 a share, on sales of $22.5bn.

Revenues at its commercial aerospace business climbed 21 per cent in the period to $15.4bn.

Shares of McDonald's were buoyed by promises of a "turnround plan", despite reporting first-quarter results that missed Wall Street forecasts.

The company said Steve Easterbrook, chief executive, would reveal the plan "to improve our performance and deliver enduring profitable growth" on May 4.

The announcement came alongside an 11 per cent drop in sales to $5.95bn for the three months to the end of March. Net income fell by a third to $811.5m, or 84 cents per share. McDonald's shares rose 2 per cent to $97.04.

Disappointing first-quarter results pushed shares of Intuitive Surgical nearly 5 per cent lower to $520.73.

The surgical robot maker reported profits of $97m or $2.57 a share, on sales of $532.1m. This fell short of estimates for earnings of $2.59 a share, on sales of $536.4m.

Technology and energy stocks led the S&P 500, as US stocks fluctuated between gains and losses.

The S&P 500 rose 0.3 per cent to 2,102.54 while the Dow Jones Industrial Average gained 0.2 per cent to 17,985.92. The Nasdaq Composite rose 0.1 per cent to 5,019.64.

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