Chipotle Rethinks Real Estate Expansion After Disappointing Q2

Chipotle

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]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Inside The Nationwide Jockeying For Opportunity Zones 2.0

Furniture Outlet The Dump Is Getting Dumped In Atlanta

Simon Approaching End Of The Road With Struggling Suburban Boston Mall

GTIS Partners Rebrands As Brightshore Capital, Launches $250M Debt Platform

Data Center Spills 5,000 Gallons Of Fuel Into New Jersey River

Hines And Rialto Close Office Credit Fund At $1.1B

Chipotle Adding Hundreds Of New Locations Worldwide

'Beyond A Routine Wobble': 10-Year Treasury Clears 5% Ahead Of Key Fed Meeting

Stockdale Capital Partners, Hamilton Lane Acquire Chino Hills Shopping Center For $157M

Bucks County Mall Closing As Owners Prepare Redevelopment Plans

Trump's DEI Crackdown Is Creating New Risks For Landlords That Lease To The Government

Airbnb Launches $250M Fund To Invest In Affordable Housing