Chipotle slowly recovers, but Q2 profit and sales fall short

Chipotle Mexican Grill posted second-quarter profit and sales that missed analysts’ estimates, a sign the burrito chain is still reeling from a food-safety crisis that drove away customers and tarnished its reputation.

Net income in the quarter was 87 cents a share, the Denver-based company said Thursday. Analysts had projected 91 cents on average, according to data compiled by Bloomberg. Same-store sales fell 23.6 percent, the third straight quarter of declines. Analysts had estimated a 20.6 percent decrease, according to Consensus Metrix.

Chipotle has struggled to regain its footing in recent months after a series of food-borne-illness-outbreaks. The restaurant chain has ramped up its marketing, launched a loyalty program and used coupons and promotions to cope with the crisis, but it’s been a slow recovery.

Chipotle officials have said the company can even- tually regain its once-enviable sales and profit margins after restaurant traffic rebounds.

“Our entire company is focused on restoring customer trust and re-establishing customer frequency,” co-CEO Steve Ells said.

The stock fell as much as 5.8 percent to $394 in late trading after the results were released. It was already down 13 percent this year through Thursday’s close.

Ells said sales have begun to get better this month after the debut of the Chiptopia loyalty program, which attracted 3.6 million participants. Since the company started Chiptopia on July 1, same- store sales have improved by 2 to 3 percentage points, he said. The size of transactions has gotten a boost as well, Ells said.