Chipotle December Sales Collapse; Reports Receipt Of FDA Subpoena, New Stock Buyback
And the hits just keep on coming. In a double-whammy for investors hoping to catch Chipotle's falling-knife, the mexican fast-food restaurant reports a 30% collapse in same-store-sales for December and receiving a grand jury subpoena with regard the California Norovirus event. The stock crashed 10% on the news. However, the stock's initial collapse has been rescued as CMG reports a boost to its buyback program... seriously!
From CMG's statement:
December 2015 Sales Trend Detail
In a report on Form 8-K filed on December 4, we noted that comparable restaurant sales were trending at -16% at the onset of the month. Following the isolated norovirus incident during the week of December 7 in a Chipotle restaurant in Brighton, Massachusetts, which garnered national media attention, comparable restaurant sales decreased to average -34%, and then recovered to -31%. The week of December 21, 2015, the U. S. Centers for Disease Control and Prevention (CDC) announced that new illnesses related to the E. coli incident associated with Chipotle restaurants in October and November 2015 had slowed substantially, but also that it is investigating five new cases that were reported in November 2015 of the same strain of E. coli O26 but with a different DNA fingerprint. Following this announcement and related national media attention, our comparable restaurant sales trended down to -37%. For the full month of December, comparable restaurant sales were -30%. Future sales trends may be significantly influenced by further developments.
Receipt of Grand Jury Subpoena
In December 2015, Chipotle was served with a Federal Grand Jury Subpoena from the U.S. District Court for the Central District of California in connection with an official criminal investigation being conducted by the U.S. Attorney's Office for the Central District of California, in conjunction with the U.S. Food and Drug Administration's Office of Criminal Investigations. The subpoena requires us to produce a broad range of documents related to a Chipotle restaurant in Simi Valley, California, that experienced an isolated norovirus incident during August 2015. We intend to fully cooperate in the investigation.
It is not possible at this time to determine whether we will incur, or to reasonably estimate the amount of, any fines, penalties or further liabilities in connection with the investigation pursuant to which the subpoena was issued.
The stock crashed...
But the stock is being rescued:
This report is also filed to announce that our Board of Directors has authorized repurchases of Chipotle common stock with a total aggregate purchase price of $300 million, exclusive of commissions.
These authorized repurchases are in addition to $300 million in repurchase authorizations announced on December 4, 2015, of which $116 million remained available as of December 31, 2015.
During the fourth quarter 2015, we repurchased approximately 609 thousand shares of stock at an average price of $556 per share. During the month of December, we repurchased approximately 401 thousand shares of stock at an average price of $527 per share. The Board's authorization of the repurchase program may be modified, suspended or discontinued at any time.
So they are facing a huge loss on recently purcahsed buyback shares... but Buybacks are the solution to all problems it would appear...
How long will that bounce last?
(2 votes)
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I used to love this place...now my wife won't step into it. I keep teasing her...let's stop here. Isn't that weird...I am sure the food is fine now, and probably EXTRA good since they can't afford another disaster...but the stigma is there. I still remember the Jack in the Box Death...and that was like 13 years ago...and the Tylenol poisening...remember that?
I'd rather eat raw radioactive eggs from Russia then eat at a Shitpotles.
https://www.youtube.com/watch?v=sZ86Us0fXKk
Just issue an executive order outlawing the Norovirus, and forcing all Chipotle customers to undergo a background check and a prostate exam, including females! ;-)
Looney
It will turn around when they partner with weight watchers.
Wanna lose weight this New Year? Well we have somehing for you..........
pods
So what's really going on here...is McShitBurgers using spies to infect Chipotle w/ disease to wipe them out? Some kind of germ warfare between competing crappy fast-food chains?
"Yes, I'll have a side of pseudomonas, and Boy!, doesn't that fungus fajita look fun! I'll add one of those...and, sure, two E coli enchiladas ... why not? I'll go all-out crazy today!"
"If you still have any botulism beans from the other day throw some on the plate for me, will ya. Those were delicious. Everyone in the ICU asked me where I got those....."
I definitely wouldn't rule out corporate espionage, perpetrators could also short the stock as an added bonus.
That's why I went on the Dahmer Diet and will only eat meat from free-range hitchhikers.
Monsanto is hardly above playing dirty. I've been suspicious from the start that was a hit.
Wouldn't be surprised if the strain of illness-causing substance was not a common variety (and came from a lab).
Chipotle took a stand against GMO and needed to be punished.
"forcing all Chipotle customers to undergo a background check and a prostate exam, including females! ;-)"
Next? Caitlyn Jenner? Your prostate exam has us a little confused, care to step into our office sir, err ma'am?
Why you had to put the link of the video here? That was disgusting now i will ever eat an egg in my life.
Yeah..The Tylenol "Poisoning"...a false flag attack initiated by Asprin Manufacturers.
Nobody was ever caught or prosecuted.
Afterwards there was a Public Relations..er...excuse me...a Main Stream Media blitz (yeah I do repeat myself at times. It is an annoyance...) on the dangers of acetamenophen...after MacNeil Labs reformulated a tamper resistant Capsule.
Yeah. I do remember that well.
The public is so easily manipulated.
I only wonder how much payola that Taco Bell had to spend to bribe the California Regulatory agents to get them to act to convene a Grand Jury hearing in this matter....
IT IS ALL CORRUPT
If that is the case....then they got'em good.
Some think that culprit was Monsanto
Monsanto, Dow and the meat packers, like Tyson, for sure.
Actually, they did catch the first Tylenol poisoner, (but not all the later copy Cats).
Guy was kinda sickly, and his wife got to the point where she couldn't stand him... Divorces are expensive, and the life insurance looked attractive. Lady had a fish tank, and cynaide was used to keep it clean. She ground down some of the fish tank cynaide, and poured it into some of his Tylenol. (She screwed up, and kept the container where she ground up the cynaide in the house, it was the traces from the grinding that tripped her up). She left a few "extra" poisoned capsules in the bottle, and then cried "It came from the store that way, who could have guessed", by the way, "where's the insurance money, I want to live it up a little now that the Old Goat is finally gone".
Remember - you can't spell "chipotle" without "e coli"!
Chiptle is victime of Corporate sabotage---- http://www.naturalnews.com/052405_Chipotle_ecoli_outbreak_corporate_sabo...
Probably bullshit, but entertaining for a tuesday morn'
It's true. Restaurants are safest to eat in after they've failed an inspection because the inspection team has crawled up their ass and over them with a fine tooth comb.
The "food" isn't the problem...it's the PEOPLE HANDLING THE FOOD!
Low wages = Low hiring standards = Dirty employees = Dirty food.
Local semi-upscale restaurant, burger and fries sets you back $7.95. Place + employees are CLEAN!
McDonalds…chity burger and fries runs $7.00…do I have to describe the employees?
I don’t understand “employers”…shit wages = shit employees = poor sales!
Rarely eat out, but occasionally stop at Subway…new hire, of a certain race…what an attitude loaded bitch…that you want to BUY SOMETHING, and that requires effort on her part, really puts her off…seriously? You think it’s a good idea to put her face to face with your customers?
Back in the day, places like subway hired the A and B students, now those kids won't even think of working those shops...those jobs are now for the D/F kids and dropouts.
My kids refused to work fast food...why? "Because the people that work there are scary"...these small shops have really fucked themselves.
Looks like Monsanto sabotage effort was succesful. Monsanto will not allow a non GMO success story without engaging in bioterrorism sabotage. Testing shows the first E.coli strain is laboratory originated and not natural occuring.
Exactly what made this stock worth $680 a share (last time I looked)?
Like come on, this is a burrito place and they're trading at over triple of well known Industrial Stocks.
"Exactly what made this stock worth $680 a share"
Cheap money + Momentum = $680 burrito joint stock value.
Who wants to eat Mexican food at Christmas? Good grief, people.
Watch it buddy! You're not allowed to say those 'insensitive' words like "Christmas" or "Mexcian" anymore .... by Executive order from his Majesty in DC.
Does this mean I'm not getting a Mexican for Christmas this year?
"Who wants to eat Mexican food at Christmas? Good grief, people."
Strangely, here in Texas tamales are a Christmas tradition. They are made by the gazillions and given as gifts and eaten at most gatherings.
I won't eat Chipotle anymore. The quality of the food has dropped dramatically over the last few months. Doesn't surprise me that it's making people sick.
I go to whole foods for a kale & spinach burrito now. Healtier and more flavorful.
Kale and spinach burrito? seriously? Then again, looking at your user name....
carne asada and marinated pollo ftw
you're the new mdb, eh?
"you're the new mdb, eh?"
or FoneStar.
Chipotle's bad food problems began when they started buying pork from offshore, mudlot hog production scources. http://www.porknetwork.com/news/top-10-hot-issues-2015
How do you know it's from offshore? Congress says they don't have to tell you now. Bastards.
Condensed version; http://www.porknetwork.com/news/chipotle-caught-pork-hypocrisy
That article makes light of the theory that Monsanto may have been behind the outbreak right after Chipotle went non-gmo. I don't know the facts but I certainly wouldn't put it past Monsanto to involve itself in corporate sabotage.
The entire site is an industry shill and from this article no lovers of Chipotle.
http://www.porknetwork.com/community/chipotle-playing-public-chumps
It sure is a co-inky dink that of the tens of thousands of fast food joints across the nation only Chipotle had multiple out breaks of rare forms of pathogens. Niman Ranch was a trusted supplier of naturally raised pork and beef that supplied pork to Chipotle. However Perdue co. bought them out in September and things have not gone so well quality wise.
Brilliant .... grabbing their own falling knife down to a still-outrageous 26 p/e !
Every time I drive by one I look inside. Deader than a shopping mall since the norovirus crap. These are the same locations that had lines 40 deep just 8 months ago.
LOL...the key words in your sentance that made me smile is "DRIVE BY"....we do the same thing.
Who wants to pay $8 for a burrito?
Never been in a Chitpotlie, but I don't eat at fast food places anyway. The masses love'um though.
$680.00 a share...damn.
LOL, this markets got a long ways to fall. I'm praying they can't prevent it as i'm buying like a mofo if it crashes hard. Like real hard, not know 2k points crap.
"Green shoots" literally
still trading at almost 30x 2016 "EPS", wtf?
Although not a Chipotle customer, I would have no problems eathing there if the situation arised. Kinda like the Sonic's that was storing hamburger buns in the restroom that made nationwide coverage. You can bet your ass that's the cleanest fkn Sonic in the US now lol.
Its this totally fresh..ORGANIC crap they have....organic means disease....face it...
See kids? Even if your restaurant refuses to pay white people who speak English and wash their hands returning to work after taking a shit a living wage, the extra profits will fund buybacks to make it all better.
There are few things in this world more expensive than cheap labour.
White folks are too stupid to understand thanks to the Gen X and Y and Z and what ever.
.
Their burritos are 90% rice. I'd rather have a gyro.
Overpriced crap for hipster gen.