Austin American-Statesman

Litany of woes send Chipotle’s quarterly profit down

- By Craig Giammona Bloomberg News Chipotle

Avocado prices shot up. Hurricanes forced restaurant­s to close. The bill for a hacker attack came in.

Those were reasons Chipotle Mexican Grill cited to explain its huge profit shortfall in the third quarter — just a few of the troubles on a long list. The burrito chain also was hit with a norovirus outbreak in Virginia and a public-relations nightmare when customers complained about rodents falling from a ceiling at a restaurant in Texas.

In short, it was a three-month stretch in which seemingly everything that could go wrong did. Executives made the case that the quarter of unfortunat­e events was an aberration, nothing indicative of foundation­al disarray. But investors who have been watching Chipotle work on its rocky comeback from the depths of the E. coli disaster in 2015 were skeptical: They sent the shares down as much as 15 percent, their worst intraday plunge in five years.

“There is a sense that Chipotle’s rebirth is running out of steam,” Neil Saunders, managing director of GlobalData Retail, said in a note.

Profit amounted to 69 cents a share, net of expenses tied to the data-security breach this year and hurricanes Harvey and Irma. Analysts estimated about $1.63 a share.

The Denver-based company has been reeling since a wide-ranging food-safety crisis sickened hun-

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