Chipotle just can’t seem to right the ship. Yesterday the fast-casual leader released its estimated Q2 earnings and the results fell below industry expert predictions.
According to The Wall Street Journal, chief financial officer Jack Hartung told investors that while most loyal customers have returned, they are not visiting the stores as frequently as they were before the food-safety crisis.
Same-store sales fell a reported 23.6 percent, making it the third consecutive quarter of declines.
Still, Chipotle is not down for the count. At the beginning of July, the company launched a limited-time loyalty promotion called Chiptopia Summer Rewards, which will run through the end of September. Although the company has resisted such loyalty programs in the past, the results are already promising. According to Bloomberg, Chiptopia has already amassed some 3.6 million members and is estimated to have improved same-store sales 2 to 3 percent since July 1.
Chipotle also began rolling out a new protein, chorizo, to select stores with the plan to offer it nationwide in the fall. Finally, the company recently debuted a short animated film called “A Love Story,” which follows two young entrepreneurs as they try to take on fast-food titans.
All of these initiatives could yield optimistic numbers when Q3 numbers are released in early October, but after sales fell short this past quarter, experts might be more cautious with their estimates.
Read more about Chiptopia and the addition of chorizo to its menu here.
By Nicole Duncan
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