CHIPOTLE RETHINKS REAL ESTATE EXPANSION AFTER DISAPPOINTING Q2

CHIPOTLE RETHINKS REAL ESTATE EXPANSION AFTER DISAPPOINTING Q2


 

CHIPOTLE RETHINKS REAL ESTATE EXPANSION AFTER DISAPPOINTING Q2 

July 27, 2016

 

Wall Street analysts have for months predicted a rough road ahead for Chipotle, but now that it’s here the firm’s execs are having to rethink their ambitious real estate expansion plan.

The Burrito King’s same-store sales are down 26% in the western states, the epicenter of their latest E. coli debacle, and across the board the fast-casual joint is experiencing slow growth, National Real Estate Investor reports. That’s forcing Chipotle execs to slow their planned 12% development pace.

The firm’s real estate team is going to refocus on “assessing future openings with a more conservative lens that takes into account (their) current economic model,” co-CEO Monty Moran says. While the company still hasn’t given a unit count for 2017, Moran says that doesn’t necessarily mean the number of openings will be reduced. [NREI]

 

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