Chipotle is blaming TV ads and guacamole for its rough fourth quarter

Chipotle on Tuesday released preliminary results for fourth-quarter earnings and sales that were weaker than analysts expected after expenses ran higher than the company had anticipated.

The fast-food chain said it anticipates fourth-quarter earnings per share (EPS) in a range of $0.50 to $0.58, below the consensus estimate of $0.96, according to Bloomberg. Comparable-store sales — which track restaurants open for at least one year — are estimated to fall 4.8%, worse than the 3.7% decline that analysts forecast.

Chipotle said its expenses were higher than expected during the quarter after it increased spending on promotions and tested television advertising. The company said the avocados it uses to make guacamole became more expensive, further ramping up costs. Restaurant-level operating margin was estimated at 13%-14%.

Chipotle has been working to lure customers following an E. coli outbreak that impacted restaurants in 14 states.

Sales have fallen for three consecutive quarters since the outbreak. In the most recent quarter, same-store sales fell by 22%.Internal surveys in December showed that customer complaints about food shortages increased and were the No. 2 issue behind long lines.

Chipotle shares fell 4% in the 12 months through Monday, January 9, and are up 3.8% ahead of the opening bell.

NOW WATCH: Watch Yellen explain why the Federal Reserve decided to raise rates

RELATED: Chipotle restaurants through the years

21 PHOTOS
Chipotle restaurants through the years
See Gallery
Chipotle restaurants through the years
DENVER, CO - FEBRUARY 9: Steve Ells, 32, owner of the Chipotle Mexican Grill restaurant chain, in front of one of his stores at 32nd & Lowell Blvd. in Denver, Colorado on Monday, Feb. 9, 1998. (Photo by Hyoung Chang/The Denver Post via Getty Images)
Exterior of the Chipotle restaurant on Wisconsin Ave. NW Washington, D.C. (Photo by Michael Williamson/The Washington Post/Getty Images)
GLENVIEW, IL - DECEMBER 02: Activity is seen near the order-counter area inside a Chipotle restaurant December 2, 2005 in Glenview, Illinois. McDonald's Corp., owners of 92 percent of Chipotle, are preparing its Mexican-style eateries for an initial public offering. (Photo by Tim Boyle/Getty Images)
CHICAGO - JANUARY 26: The Chipoltle Mexican Grill logo is painted on the door of one of the Chain's restaurants in the trendy Bucktown neighborhood January 26, 2006 in Chicago, Illinois. McDonald's spin-off of the restaurant chain ended the day with the Initial Public Offering (IPO) closing at $44, double its opening price. It was the best opening day gain by a U.S.-based IPO in more than five years. (Photo by Scott Olson/Getty Images)
UNITED STATES - JANUARY 26: Workers prepares meals at Chipotle Mexican Grill in West Bloomfield, Michigan on Thursday, January 26, 2006. Chipotle Mexican Grill Inc.'s shares more than doubled on the first day of trading after McDonald's Corp. took the fast-growing chain public. (Photo by Jeff Kowalsky/Bloomberg via Getty Images)
DENVER, CO - JANUARY 26: The original Chipotle restaurant at 1644 E. Evans Ave in Denver, shown here on Jauary 26, 2006. (Photo by Cyrus McCrimmon/The Denver Post via Getty Images)
A Chipotle burrito in it's signature aluminum wrap on Friday, February 12, 2010. Burrito was that the original location on E. Evans Ave. Cyrus McCrimmon, The Denver Post (Photo By Cyrus McCrimmon/The Denver Post via Getty Images)
Chipotle burritos at the original location on E. Evans Ave. Bryan Sawyer who eats about 3 times a week at the Chipotle eats a steak black bean burrito on Friday, February 12, 2010. Cyrus McCrimmon, The Denver Post (Photo By Cyrus McCrimmon/The Denver Post via Getty Images)
Gregory Rec/Staff Photographer: -- Kyle Braley stirs a tomatillo green chili salsa at Chipotle Mexican Grill in South Portland on Monday, December 13, 2010. The popular restaurant chain, which serves naturally-raised beef, chicken and pork, has its grand opening today. (Photo by Gregory Rec/Portland Press Herald via Getty Images)
A pedestrian walks into a Chipotle Mexican Grill Inc. location in New York, U.S., on Wednesday, Oct. 17, 2012. Chipotle, the best- performing restaurant stock in the Standard & Poor's 500 Index last year, is expected to release earnings data on Oct. 18. Photographer: Scott Eells/Bloomberg via Getty Images
The Chipotle Mexican Grill Inc. logo is displayed on a paper bag at a location in New York, U.S., on Wednesday, Oct. 17, 2012. Chipotle, the best- performing restaurant stock in the Standard & Poor's 500 Index last year, is expected to release earnings data on Oct. 18. Photographer: Scott Eells/Bloomberg via Getty Images
Chipotle Mexican Grill Inc. employees prepare food at a location in New York, U.S., on Wednesday, Oct. 17, 2012. Chipotle, the best- performing restaurant stock in the Standard & Poor's 500 Index last year, is expected to release earnings data on Oct. 18. Photographer: Scott Eells/Bloomberg via Getty Images
A steak burrito is arranged for a photograph with a drink and bags of chips at a Chipotle Mexican Grill Inc. restaurant in Hollywood, California, U.S., on Tuesday, July 16, 2013. Chipotle Mexican Grill Inc. is scheduled to release earnings data on July 18. Photographer: Patrick T. Fallon/Bloomberg via Getty Images
A employee sprinkles cheese on a burrito at a Chipotle Mexican Grill Inc. restaurant in Hollywood, California, U.S., on Tuesday, July 16, 2013. Chipotle Mexican Grill Inc. is scheduled to release earnings data on July 18. Photographer: Patrick T. Fallon/Bloomberg via Getty Images
Employees prepare lunch orders at a Chipotle Mexican Grill restaurant at Madison Square Park in New York, U.S., on Wednesday, Jan. 29, 2014. Chipotle Mexican Grill Inc. is expected to release earnings figures on Jan. 30. Photographer: Craig Warga/Bloomberg via Getty Images
Employees prepare lunch orders at a Chipotle Mexican Grill restaurant at Madison Square Park in New York, U.S., on Wednesday, Jan. 29, 2014. Chipotle Mexican Grill Inc. is expected to release earnings figures on Jan. 30. Photographer: Craig Warga/Bloomberg via Getty Images
MIAMI, FL - MARCH 05: A Chipotle restaurant is seen on March 5, 2014 in Miami, Florida. The Mexican fast food chain is reported to have tossed around the idea that it would temporarily suspend sales of guacamole due to an increase in food costs. (Photo by Joe Raedle/Getty Images)
A Chipotle eatery in the Financial District of Manhattan NYC viewed from the outside looking in shows the interior design as well as people eating & talking, & also reflects the urban building from across the street in the upper left corner of the window
NEW YORK CITY, NEW YORK, UNITED STATES - 2015/10/18: Restaurants in USA: Chipotle Mexican Grill Chipotle Mexican Grill, Inc. is a chain of restaurants in the United States, United Kingdom, Canada, Germany, and France, specializing in Mission burritos and tacos. (Photo by Roberto Machado Noa/LightRocket via Getty Images)
NEW YORK, NEW YORK -- FEBRUARY 8: A sign sits in the window of a Chipotle restaurant on Broadway in Lower Manhattan telling customers the restaurant is closed until 3 p.m. on February 8, 2016 in New York City. The Mexican food chain is closing stores for lunch nationwide for a meeting on food safety following a number of E. coli outbreaks. (Photo by Andrew Renneisen/Getty Images)
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

See Also:

SEE ALSO: Chipotle is about to fix the most annoying part of eating there

DON'T MISS: The 27 most important finance books ever written

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.