Chipotle Mexican Grill Inc. said it plans to boost its marketing and promotion efforts in the second quarter, but investors weren't impressed.
In a filing yesterday with the Securities and Exchange Commission, the Denver burrito chain said it expects its "marketing and promotion costs to be up approximately 20 to 30 basis points versus the first quarter of 2017 to 3.6 percent-3.7 percent of sales. As a result, we expect other operating costs as a percentage of sales for the second quarter to be at or slightly higher than reported for the first quarter."
"For the full year, we continue to expect comparable restaurant sales increases in the high single digits, 195-210 new restaurant openings, and an estimated effective tax rate of approximately 39 percent," Chipotle continued.
Investors weren't impressed.
In early Tuesday trading, shares of Chipotle (NYSE: CMG) were down more than 5 percent, falling more than $25 to around $433.
Read more at the Denver Business Journal: http://bit.ly/2sOWgYY