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Chipotle Reports First Ever Profit Losses

Chipotle

Fast casual chain Chipotle is having a bad year and an even worse quarter, it seems.

The company last week reported its first-ever quarterly loss during its decade as a public company. And it's a big one – a drop of nearly 30 percent, bringing the company's total slump for the year to 11 percent.

Attempts to win back consumers with free burritos backfired and cost the company millions in lost revenue. Consumers are still weary of the restaurant after the E. Coli, salmonella, and norovirus outbreaks last year that sickened hundreds across the country.

Some analysts say this may be the beginning of a long, slow decline for Chipotle, factoring in imminent minimum-wage increases for workers in California and New York, and that sales on the East and West coasts have been slower to recover.

The company is "carefully reviewing" new restaurant projects, said Chipotle co-Chief Executive Monty Moran in Reuters.

Read More:



  • Profit Goes Poof: Chipotle Faces First-Ever Loss (USA Today)
  • Chipotle's Long Road to Recovery Comes into Focus as Sales Drop (Bloomberg)
  • Chipotle's E. coli Outbreak Brings Chain Down to Earth (Reuters)
  • Chipotle's Sales are Still Getting Destroyed by the E. coli Crisis (Business Insider)


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