Invisible Hand of the Market dismayed at paltry serving size of Chipotle earnings

Chipotle missed Wall Street earnings estimates, leaving investors feeling like their burrito bowl was half full.

The burrito chain reported a 6% increase in same-store sales, which came just below expectations. Revenue, net income, and margins were all higher than they were at the same point last year. Still, investors sold off, sending its stock down about 7% in aftermarket trading.

Food companies have for months been pointing to a strained consumer as a reason for their lackluster earnings.

Chipotle has actually performed better than its peers, in part because it caters to a consumer who is a tax bracket or two above the demographic that fast-food chains cater to. A consumer might expect a Chipotle bowl to be $14, but would balk at the same price for a Big Mac.

McDonald’s, which also reported earnings on Tuesday, has reported several quarters of declines in same-store sales.

What may be adding to Chipotle investors' anxiety is the recent loss of their superstar CEO, Brain Niccol, who left for Starbucks earlier this year. This is the first quarter under Scott Boatwright, the burrito chain's interim top boss.