Chipotle Rethinks Real Estate Expansion After Disappointing Q2
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]