After the closing bell Tuesday, shares of Chipotle Mexican Grill Inc. dropped more than 5 percent as the fast-casual restaurant chain took a hit last quarter for raising menu prices to offset higher beef and dairy costs. Meanwhile, Internet giant Yahoo! Inc. missed earnings and revenue forecasts as its display advertising business dropped 7 percent from a year ago. Separately, Yum! Brands Inc., which operates fast food chains Pizza Hut, Taco Bell and Kentucky Fried Chicken, beat earnings per share forecasts, but saw its revenue dip after sales in China fell 12 percent.
Here's a more in depth look at companies reporting after the bell Tuesday:
Chipotle’s Sales Disappoint
Chipotle Mexican Grill Inc. (NYSE:CMG) saw its comparable restaurant sales trail Wall Street forecasts last quarter, sending shares down 5.3 percent to $655.32, despite beating Wall Street's earnings estimates.
Chipotle turned in first-quarter net income of $122.64 million, or earnings per share of $3.88, on revenue of $1.09 billion, compared with a profit of $83.07 million, or earnings per share of $2.64, on revenue of $904.16 million a year ago. Analysts had expected Chipotle to report earnings of $3.66 a share on $1.11 billion in revenue, according to analysts polled by Thomson Reuters.
However, comparable restaurant sales, a key metric that compares the sales of stores that have been open for at least 13 months, rose 10.4 percent during the quarter. Sales were previously estimated to rise 11.8 percent, a Consensus Metrix estimate showed. Meanwhile, food costs were 34 percent of revenue last quarter as the increases in menu prices were offset partially by increased beef and tortilla costs.
Shares of Chipotle have added 2 percent this year and have gained more than 37 percent in the last 12 months.
Yahoo Earnings, Revenue Miss
Shares of Yahoo! Inc. (NASDAQ:YHOO) initially fell more than 2 percent in extended-hours trading Tuesday after the company missed quarterly earnings and revenue forecasts. However, shares recovered and edged up 1.7 percent to $45.24.
The Sunnyvale, California, company posted first-quarter net income of $21 million, or earnings per share of 2 cents, on revenue of $1.043 billion, compared with a profit of $311.58 million, or earnings per share of 29 cents, on revenue of $1.09 billion during the same period a year ago. Wall Street had expected Yahoo to report first-quarter net income of $102.24 million, or earnings per share of 10 cents, on revenue of $1.06 billion, Reuters' data showed.
The company's display advertising revenue was $464 million in the first quarter, a 2 percent increase compared to a year earlier. However, display revenue, excluding traffic acquisition costs, was $381 million last quarter, a 7 percent drop compared to the first quarter of 2014.
Shares of Yahoo have lost more than 11.3 percent this year, but have rallied just over 29 percent in the last 12 months.
Yum Beats Earnings Estimates
Shares of Yum! Brands Inc. (NYSE:YUM) saw its shares rally more than 4 percent Tuesday to $84.10 after the company topped earnings forecasts. The company’s revenue missed estimates, but sales in its China division fell 12 percent last quarter, lower than what Wall Street had previously anticipated.
Meanwhile, same-store sales at the company's Kentucky Fried Chicken and Taco Bell divisions grew 5 percent and 6 percent, respectively.
The Louisville, Kentucky, company posted first-quarter net income of $362 million, or earnings per share of 81 cents, on revenue of $2.72 billion, compared with a profit of $399 million, or earnings per share of 87 cents, on revenue of $2.62 billion a year earlier.
Shares of Yum Brands have gained more than 11 percent this year and have climbed more than 4 percent in the last 12 months.