Arab Today, arab today chipotle slumps on slower sales growth pork woes
Last Updated : GMT 13:20:23
Arab Today, arab today
Arab Today, arab today

Chipotle slumps on slower sales growth, pork woes

Arab Today, arab today

Arab Today, arab today Chipotle slumps on slower sales growth, pork woes

Chipotle
New York - AFP

Shares of Chipotle slumped Wednesday as the restaurant company forecast slower sales growth, in part due to an exodus of pork-eaters frustrated by the chain's sourcing problems with the meat.

The fast-growing burrito chain again notched impressive results in the first quarter, reporting a 48 percent rise in earnings to $122.6 million and opening 49 new restaurants. Chipotle Mexican Grill has more than 1,800 restaurants, including 19 outside the United States.

But shares tumbled 7.3 percent to $642.20 in afternoon trade after Chipotle projected comparable restaurant sales increases in the "low-to-mid single digits" in 2015.  

That is far below the 10.4 percent gain in the first quarter and the 16.8 percent jump in 2014.

Chipotle chief financial officer Jack Hartung said the chain, popular with millennials, has a history of "this kind of surge" followed by periods of "leveling off."

But Hartung also acknowledged that business had been hit by the absence of pork in some restaurants after it suspended a supplier earlier this year.

In January, Chipotle broke off orders with the unspecified supplier because it fell short of a requirement to raise pigs with access to the outdoors or in deeply bedded pens.

Raising pigs on hard-slatted floors without bedding is "inhumane," said co-chief executive Steve Ells.

"We knew that removing this pork from our supply was the right thing to do, but our decision left us without enough pork and the resulting outages affected more than one-third of our restaurants," Ells said.

The chain had hoped patrons who enjoy Chipotle's braised-pork "carnitas" dishes would switch to other meats.

Instead, these diners "appear to be visiting less often or not at all until they know we have carnitas in their market," Hartung said.

Chipotle experimented with "rolling blackouts" during which carnitas were removed from regions for finite periods, but discovered that the move left consumers confused.

Chipotle now plans to offer carnitas continuously in markets where the meat is especially popular, company officials said.

Chipotle has also located an undisclosed new pork supplier and expects pork supplies to return to normal levels in the fourth quarter.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chipotle slumps on slower sales growth pork woes Arab Today, arab today chipotle slumps on slower sales growth pork woes

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chipotle slumps on slower sales growth pork woes Arab Today, arab today chipotle slumps on slower sales growth pork woes

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Saudi witnessing a remarkable growth

GMT 09:57 2017 Saturday ,23 September

Saudi witnessing a remarkable growth
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today US-made bomb used in fatal strike

GMT 10:16 2017 Saturday ,23 September

US-made bomb used in fatal strike
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 11:29 2017 Thursday ,21 September

Lufthansa chief eyes up to 78

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday