Chipotle reported earnings for the third-quarter and the results weren’t good. Sales were down 14.8% in the quarter to $1.0 billion as the Mexican fast-casual chain sees continued weakness following health scares at the restaurants from the past year.
Shares in Chipotle (CMG) plunged $37.65 in trading on Wednesday to close at $368.02, down more than 9%. The company’s stock has dropped 23% this year.
Chipotle reported that comparable restaurant transactions decreased 15.2% in the third quarter and comparable restaurant sales were also down 21.9%.
The company reported net income of $7.8 million in the quarter.
Chipotle has opened 168 new restaurants so far in 2016
“We continued to make steady progress in our sales recovery during the third quarter. We are earning back our customers’ trust, and our research demonstrates that people are feeling better about our brand, and the quality of our food. While this year has been a year of reinvestment, we are now focused on continuing to further recover sales and improve our economic model to create long-term shareholder value,” said Steve Ells, founder, chairman and co-CEO of Chipotle.
Chipotle operates over 2,100 restaurants, including 27 Chipotle restaurants outside the U.S. and 15 ShopHouse Southeast Asian Kitchen restaurants. It is also an investor in a business that operates seven Pizzeria Locale restaurants.