Chipotle Mexican Grill Inc. (CMG.N) will open smaller restaurants to get the “basics of the right” and announce Tuesday disappointing quarterly sales and revenue, as the company has to recover from a series of food safety gaps.
Burrito chains fell short of work by 9.5 percent, after executives reported that Käsedipps was introduced in September, somewhat slower than expected sales in established restaurants. Chipotle also announced that it will increase prices by around 5 percent in nearly 900 stores in November.
Chipotle moderated the prognosis for 2017 slightly to order new restaurant openings below the lower limit of the previously published range of 195-210. He also said that next year will open only 130 to 150 new stores.
“We will be a bit slower, but it’s a temporary slowdown for 12 to 18 months,” said founder and CEO Steve the rod in an interview. “You must have the basics right first. If you look at yourself and figure out where you’ve made past mistakes, you can prepare for change. ”
The news was price resistance
“If the expectations of the future growth of the unit are uneven, which is certainly negative in the stock,” said Evercore analyst Matej McGinley.
Sales at restaurants Chipotle increased by at least 13 percent in the third quarter, which ended September 30. According to Matrix’s consensus, analysts expect an average increase of 1.2 percent.
Executives said sales fell more than 2 percent before chewing cheese, sold as a sauce alone or as a sauce for start-up, after the outbreak of a nor virus employee at Virginia’s restaurant sales.
The cost includes 64 cents associated with security incidents, 19 cents of avocado price growth and 13 cents Harvey and Irma hurricanes. Thomson Reuters I / B / E / S averaged a consensus of $ 1.63 per share.