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Chipotle Mexican Grill, Inc.

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Chipotle’s aggressive unit expansion strategy is expected to accelerate same-store sales, going forward. However, the company’s comps have declined in the recent past owing to the negative publicity related to the E. coli and the norovirus outbreaks. Margins are also expected to continue to remain under pressure due to higher labor costs, and increased promotional and marketing expenses. Estimates have also been going down ahead of Chipotle’s second quarter earnings release. However, the company’s efforts to conduct deep cleaning and sanitizing at all its locations and collaborating with health officials to improve food-handling practices, and test its ingredients before cooking would help reinforce customers’ confidence. Further, the company strives to maintain its market position through expansion plans, antibiotic-free meats, use of organic ingredients and various sales and technology driven initiatives.

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