As investors know too well, Chipotle has been hit hard by a series of food safety scandals and has yet to fully recover. Its last report was, well, bad.
• Revenue was down by over 20%
• Sales were down by almost 30%
• The company lost over $25 million
Now the company is trying to reboot. It has launched a slew of new marketing campaigns, the most prominent being Chiptopia, a loyalty program that will give a bunch of freebies to customers who eat a lot—and I mean a lot—of Chipotle for three months.
The company has also been trying to prove to the public that it is buckling down on safety concerns. But is that enough to revive the burrito chain? We'll find out in a few days. Here are the key things we're watching for:
• Increased revenue: Analysts are expecting revenue of about $1.05 billion, which would be an upswing from last quarter ($834.5 million) but a decrease from Q2 2015 ($1.2 billion).
• Increased sales: A recent report revealed that 13% of customers don't plan to return to Chipotle—and that another 13% don't frequent the restaurant as much as they used to.
• Metrics of customer loyalty, such as the reception to the Chiptopia program
Stay tuned! CGW