For the second consecutive quarter, Chipotle Mexican Grill posted a decline in same-store sales driven by a drop in foot traffic — triggering a 9% after-hours drop in the company’s stock.
On Wednesday, the Newport Beach-based company reported total revenue of $3.1 billion for the quarter ended June 30, up 3% from the same period last year. Same-store sales, a key financial metric, declined 4% due to a 4.9% drop in transactions, the company said.
In the previous quarter, same-store sales dropped .4%.
Before Brian Niccol’s departure last year for Starbucks, Chipotle logged an 11.1% increase in same-store sales for the quarter ended July 24, a year ago. Same-store sales have been on the decline ever since.
During the recent quarter, the chain opened 61 restaurants. Of those, 47 locations including a Chipotlane, a drive-thru lane dedicated for the pickup of digital orders.
The fast-casual chain’s shares dropped 9.4% in after-hours trading to $47.83 with a market cap of $71.1 billion.