Once upon a time, Chipotle would dazzle investors by exceeding expectations every quarter. But ever since the food safety crisis, the brand is having a difficult time recovering.
Chipotle has seen a 14.8% decline in quarterly revenue. However, the brand remains optimistic.
“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, Chipotle co-CEO in a statement.
But today two small investors have called for the chain to replace Mr. Ells with an independent director.
While the fast casual brand has been struggling, other restaurant chains have been on the rise.
Some of these brands includes, Panera Bread, Domino’s Pizza and BJ’s restaurants.
Dominos has seen a 48% increase in shares this year. For quarter three, the pizza chain saw a 16.9% spike in revenue and a 24.8% increase in net income. Panera bread, Darden and Bj’s recorded revenues higher than this.
With that being said, the restaurant industry as a whole is seeing less investors interested.
”An equal-weighted index of the 11 S&P 1500 restaurant stocks that reported third-quarter earnings is down 5% this year. Even Panera Bread, which reported 2.9% revenue growth in the third quarter, has seen its shares fall 1.5% this year. The company's net income sagged 1.3% in the third quarter,” writes “USA TODAY.”
Darden saw a 27.5% spike in net income at 110.2 million. But, the group’s shares are down by 3.1%.
Check out ten brands turning Chipotle into roadkill here.
Although investors seem less interested in restaurant brands, consumers are not. Yet, consumers are choosing to visit less chain restaurants and instead are choosing to explore new innovative concepts.
The market continues to get more crowded, giving guests much more options on where to spend their money. According to Foodable Labs data, Social Restaurant Visits (SRVs) for the industry as a whole have seen a spike.
We recently covered the “high-flying” restaurant brands in this market that have seen an impressive increase in SRVs within the last few months. Check out how these brands are appealing to today’s consumer here.