Whole Foods is getting smoked

Whole Foods reported third-quarter results after the close on Wednesday, missing expectations on earnings.

Shares plunged 11% in after-hours trading.

The company posted record sales of $3.6 billion, in line with the consensus forecast according to Bloomberg. But diluted earnings per share of $0.43 missed the forecast for $0.44.

Comparable store sales - at locations open for at least one year - grew 1.3%.

The company expects comparable store sales to be in the "low single digits" for the fiscal year. Guidance for sales growth was a bit light at 7% (previously 9%), with diluted EPS estimated to be between $0.34 and $0.35.

In the earnings statement, president Jeff Turnas said: "We are really excited about the progress we have made with securing real estate in markets where there is high demand for both quality food and value in a convenient format. We plan to open up to five 365 by Whole Foods Market stores in the second half of next year with the expectation of doubling the number of openings in 2017."

Items at the new 365 by Whole Foods will be nearly as cheap as Trader Joe's, and will help the company compete better, according to a Bloomberg Intelligence study.

The stock is down 19% year-to-date, and up 11% over the past year.