Shares in Chipotle fell about 9 per cent in after-hours trading after the burrito chain warned of cost pressures in the coming months from higher beef and avocado prices.

Same-store sales rose by a slightly slower than expected 7.4 per cent in the second quarter, but lower wage and food costs lifted earnings per share by 33.2 per cent, beating Wall Street’s expectations.

Brian Niccol, chief executive, told analysts Chipotle was seeing inflationary pressures as avocado prices bounced back from “very favourable” levels.

Executives said they observed no sign of weakness in demand from low-income or wealthier consumers, however. “People have jobs and they have security around their jobs,” chief financial officer Jack Hartung said in an interview.

Chipotle shares, which hit a record high last week, dropped about 9 per cent in after-hours trading. If maintained, the fall would be the stock’s steepest since March 2020.